Consolidated Financial Statements For the Six-Month Period Ended September 30, 2000

November 16, 2000

Nissho Iwai Corporation Listed Stock Exchange: The first sections of Tokyo, Osaka, and Nagoya Stock Exchange Headquarters: Osaka, Tokyo Securities Code: No. 8063 Contact Information: Junichi Ito, General Manager, Public Relations Dept. Tel. (03) 3588-4715 Board of Directors' Meeting: November 16, 2000 1. Consolidated Business Results for the Six-Month Period Ended September 30, 2000 (1) Results of Operations   Net Sales Operating Income Recurring Profit Millions of Yen % Millions of Yen % Millions of Yen % September 30, 2000 3,298,876 - 12.1 28,727 37.8 16,017 - 0.9 September 30, 1999 3,751,192 - 19.2 20,845 16.1 16,166 115.0 March 31, 2000 7,281,304   49,088   32,053     Net Income EPS EPS(Diluted) Millions of Yen % Yen Yen September 30, 2000 5,623 - 6.43 6.09 September 30, 1999 - 2,301 - - 2.63 - March 31, 2000 10,220   11.69 11.10 Notes: 1. Equity in earnings of unconsolidated subsidiaries and affiliates during the current interim period :  -4,729million yen preceding interim period :  -2,281million yen last fiscal year :  -2,037million yen 2. Net unrealized gains(losses) for derivative instruments at period end:   0million yen. 3. Changes in accounting policies during the period: NA 4. Percentages indicate changes in net sales, operating income, recurring profit and net income compared with the preceding interim period. (2) Financial Position   Total Assets Shareholders' Equity Shareholders' Equity Ratio BPS Millions of Yen Millions of Yen % Yen September 30, 2000 3,806,695 112,627 3.0 128.80 September 30, 1999 4,451,939 164,815 3.7 188.48 March 31, 2000 4,078,286 182,446 4.5 208.65 Notes: In accordance with a change in accounting standards in Japan, foreign currency translation adjustments of 78,211 million yen was transferred from other assets to shareholders' equity as a contra-equity account effective in the six-month period ended September 30, 2000. The amounts included in other assets as of September 30, 1999 and March 31, 2000, were 72,535 million yen and 87,274 million yen, respectively.   (3) Cash Flows   Cash Flows from Operating Activities Cash Flows from Investing Activities Cash Flows from Financing Activities Cash and Cash Equivalents at End of Period Millions of Yen Millions of Yen Millions of Yen Millions of Yen September 30, 2000 63,789 209,807 - 232,036 340,627 September 30, 1999 50,151 197,365 - 150,881 288,485 March 31, 2000 61,973 401,084 - 347,106 298,779 Notes: Results for the six months ended September 30, 1999, are based on the Annual Report standards, which are partially in accordance with U.S. GAAP.   (4)   Items Related to Consolidation and Application of Equity Method   Consolidated subsidiaries :  366   Unconsolidated subsidiaries under Equity Method :  16   Unconsolidated affiliates under Equity Method :  171   Total :  553 (5)   Changes in the Scope of Consolidation and Application of Equity Method   Consolidated companies   Added :  16     Removed :  62   Equity method   Added :  10     Removed :  28 2. Consolidated Business Projections for the Fiscal Year Ending March 31, 2001   Net Sales Recurring Profit Net Income Millions of Yen Millions of Yen Millions of Yen Fiscal year ending March 31, 2001 6,900,000 44,000 23,000 Reference: Projected EPS for the fiscal year ending March 31, 2001:  26.30 yen

This report contains forward-looking statements, which reflect management's current views with respect to future events and financial performance. Actual results may differ materially from those projected in the forward-looking statements due to factors such as changing economic environment. exchange rate fluctuations, M&A activities, and changes in competitive conditions as well as government regulations and litigation. Note: Nissho Iwai Corporation and its consolidated domestic subsidiaries maintain their accounts and records in accordance with the provisions set forth in the Japanese Commercial Code and the Securities and Exchange Law and in conformity with accounting principles and practices generally accepted in Japan. The above statements are translated into English for the convenience of the readers outside Japan.

Consolidated Financial Statements Non-Consolidated Financial Statements To Our Stakeholders Results of Operations Outlook for Fiscal Year 2000

Although due care has been taken to ensure data accuracy, under no circumstances will Nissho Iwai Corporation be liable for any direct, indirect, special, incidental, consequential, or other damages based on any use of this financial report.