Consolidated Financial Statements For the Fiscal Year Ended March 31, 2000

May 18, 2000

Nissho Iwai Corporation Listed stock exchange: the first sections of Tokyo, Osaka, and Nagoya Headquarters: Osaka, Tokyo Securities Code: No. 8063 Contact Information: Junichi Ito, General Manager, Public Relations Dept. Tel. (03) 3588-4715 Board of Directors' Meeting: May 17, 2000 1. Consolidated Business Results for the Fiscal Year Ended March 31, 2000 (1) Results of Operations Net Sales Operating Income Recurring Profit Millions of Yen % Millions of Yen % Millions of Yen % March 31, 2000 7,281,304 -15.9 49,088 9.1 32,053 33.6 March 31, 1999 8,658,906 -13.9 44,982 -23.8 23,983 -45.5 Net Income EPS EPS (Fully Diluted) ROE (Net Income) ROA (Recurring Profit) Recurring Profit to Net Sales Millions of Yen % Yen Yen % % % March 31, 2000 10,220 - 11.69 11.10 5.9 0.7 0.4 March 31, 1999 -98,542 - -112.69 - -45.2 0.5 0.3 Notes: 1. Equity in earnings of unconsolidated subsidiaries and affiliates during the period: \-2,037million preceding period: \-3,610million 2 Net unrealized gains(losses) for marketable securities: \-46,913million. 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 fiscal year. (2) Financial Position Total Assets Shareholders' Equity Shareholders' Equity Ratio (BPS) Millions of Yen Millions of Yen % Yen March 31, 2000 4,078,286 182,446 4.5 208.65 March 31, 1999 4,658,033 166,834 3.6 190.79 (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 Year Millions of Yen Millions of Yen Millions of Yen Millions of Yen March 31, 2000 61,973 401,084 -347,106 298,779 March 31, 1999 112,461 202,503 -416,175 191,299 (4) Items Related to Consolidation and Companies Accounted for by the Equity Method Consolidated subsidiaries : 412 Unconsolidated subsidiaries (accounted for by the Equity Method) : 21 Unconsolidated affiliates (accounted for by the Equity Method) : 184 (5) Changes in the Scope of Consolidation Consolidated companies Added: 47 Removed: 30 Equity method Added: 22 Removed: 40 2. Consolidated Projections for the Fiscal Year Ending March 31, 2001 Net Sales Recurring Profit Net Income Millions of Yen Millions of Yen Millions of Yen Interim period ending September 30, 2000 3,500,000 11,000 4,500 Fiscal year ending March 31, 2001 7,300,000 44,000 23,000 Reference: Projected net income per share for the fiscal year ending March 31, 2001: \26.30

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 statement are translated into English for the convenience of the readers outside Japan.

Management Policy Consolidated Financial Statements Non-Consolidated Financial Statements

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.