Sumitomo Corporation (head office: Chuo-ku, Tokyo; president: Motoyuki Oka) and Tokio Marine Capital Co., Ltd., (head office: Chiyoda-ku, Tokyo; president: Hideaki Fukazawa) today reached an agreement with Isetan Co. (head office: Shinjuku-ku, Tokyo; president: Nobukazu Muto) to acquire all outstanding shares of Barneys Japan Co., Ltd. (head office: Shinjuku-ku; president: Naoki Nakamura), a wholly owned subsidiary of Isetan, from the department store chain operator. Under the agreement, Sumitomo Corporation and Tokio Marine Capital concluded a contract with Isetan for the share-acquisition deal.

Barneys Japan obtained a master license from Barneys New York, Inc. (head office: New York State; president: Howard Socol) in 1989 to sell Barneys apparel and sundry goods as well as imported luxury brands in Japan. At present, Barneys Japan operates three shops in the Tokyo metropolitan area (Shinjuku, Yokohama, and Ginza). A Barneys store features a large, luxuriously furnished interior; a unique assortment of the latest fashion, centering on imports; customer-oriented service by sales clerks who possess professional expertise; and the creation of a unique shop atmosphere through the use of seasonably fitted interior displays and decoration. Thanks to such features, Barneys, as a specialty store, has established a brand image unrivaled by other stores in Japan.

Sumitomo Corporation regards the brand business as a strategically important area with high growth potential. By stepping up its involvement in this business, the company does not aim to just expand trading revenues, as import agents or companies with certain business licenses aim to do. Behind the promotion of its brand business is the company's strategy for enhancing business value and eventually expanding revenues by concentrating financial and human resources into select brand areas.

Following the sale of its equity holding in Coach Japan to the company's U.S. parent, Coach Inc.-a large-scale deal that was made last year-Sumitomo Corporation's latest equity acquisition of Barneys Japan was designed to take advantage of Barneys' brand-name recognition in Japan. The company is confident that its latest contract with Isetan will further enhance the corporate value of Barneys Japan thanks to the use of Sumitomo Corporation's human resources, those who are experts in the brand business, and store-operation know-how along with Barneys Japan's current marketing power, particularly its existing human resources.

In addition to the brand business, Sumitomo Corporation has promoted business directly related to consumers, such as the mail-order business (Otto-Sumisho Inc. and Jupiter Shop Channel Co., Ltd.), supermarket chain business (Summit Inc.), and drugstore operation (Tomod's and American Pharmacy). We will continue proposing ways to realize high-quality lifestyles to consumers by stepping up our business in these areas.

Tokio Marine Capital is a pioneer in corporate buyout investments, having undertaken such business since 1998. The company engages in various investment-related deals, from management buyouts meant for the business restructuring of big companies to efforts to revive failing companies. Major investments by the company in the past include those in Zero Co., Ltd. (previously known as Nissan Rikuso), which engages in the vehicle transportation business; Wanbishi Archives Co., Ltd., a general information management company; Sweet Garden Co., Ltd. (previously known as Takarabune), which makes and sells pastry; and Benex Corp., which manufactures and sells butt-welding pipe fittings. In the latest deal with Isetan, Tokio Marine Capital will try to enhance the corporate value of Barneys Japan in collaboration with Sumitomo Corporation by arranging financing for its new store openings, providing negotiation support, and offering advice in the formulation of financial and capital strategies. Tokio Marine Capital will acquire shares of Barneys Japan from Isetan through TMCAP2005, a limited liability investment business association operated by Tokio Marine Capital.

Sumitomo Corporation and Tokio Marine Capital will try to realize a growth strategy for Barneys Japan (specifically, the business expansion of its existing stores in the Tokyo metropolitan area and new store openings in major cities across the nation) by combining the outstanding brand power of the Barneys name and the business resources of the two companies, while helping Barneys Japan take a bigger leap forward.


Outline of Barneys Japan Co., Ltd.

(1)	Corporate Name	:	Barneys Japan Co., Ltd.
(2)	Representative	:	Naoki Nakamura, Representative Board Director and President
(3)	Location of Head Office	:	5-17-18 Shinjuku, Shinjuku-ku, Tokyo
(4)	Date of Establishment	:	June 16, 1989
(5)	Primary Business Line	:	Men's and women's apparel
(6)	Fiscal Year	:	March-February
(7)	No. of Employees	:	281 (as of the end of February 2006)
(8)	No. of Stores	:	3 (Shinjuku, Yokohama, and Ginza)
(9)	Capital	:	\2,490 million (as of the end of February 2006)
(10)	No. of Outstanding Shares	:	49,800 shares
(11)	Earnings Results for Latest Fiscal Year
(unit: million yen)
Fiscal year ended February 2005 Fiscal year ended February 200 Sales 12,336 15,611 Operating Profit -312 515 Pretax Profit -347 467 Net Profit -53 391