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Chase to Acquire Dai-Ichi Kangyo's Corporate Trust Business

Business Wire, Dec 27, 2000

Business Editors

NEW YORK--(BUSINESS WIRE)--December 27, 2000

The Chase Manhattan Bank, principal bank subsidiary of The Chase Manhattan Corporation (NYSE: CMB), and Dai-Ichi Kangyo Trust Company of New York ("DKTC"), a wholly owned subsidiary of The Dai-Ichi Kangyo Bank, Ltd., today announced a definitive agreement under which Chase will acquire DKTC's U.S.-based corporate trust and escrow businesses.

The portfolio includes corporate debt, municipal revenue bonds, Eurobonds, project and structured financings, medium-term notes, commercial paper and escrows. Financial terms were not disclosed.

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Under the terms of the agreement, Chase's institutional trust division, Capital Markets Fiduciary Services, will take over trust administration of approximately $5 billion of outstanding debt for which DKTC now serves as trustee or agent. The transaction is expected to close in the first quarter of 2001.

"The DKTC transaction is consistent with Chase`s strategy to grow our corporate trust business through selective acquisitions," said Michael K. Clark, Executive Vice President in charge of Capital Markets Fiduciary Services. "We are very excited about this opportunity and are committed to continuing to provide our customers with top-quality service as their trust needs grow in scope and complexity."

"This decision to exit the corporate trust business in the U.S. is difficult, but I am confident that Chase has the necessary scale, resources and commitment to the corporate trust business to ensure that DKTC`s clients receive the highest quality products and services available in the market," stated Keiji Torii, Regional Head of the Americas of The Dai-Ichi Kangyo Bank, Ltd.

The acquisition of DKTC's U.S.-based corporate trust and escrow businesses is the latest in a series of significant acquisitions by Chase's institutional trust division. During 2000, the division acquired the U.S.-based corporate trust business of The Fuji Bank and Trust Company, and the corporate and municipal trust business of First Tennessee Bank National Association. Earlier acquisitions included the corporate trust and agency businesses of Compass Bank and Mellon Bank in 1997, and PNC in 1998. In April 1999, Chase purchased the assets of the DCS Corporation, a software company specializing in Chapter 13 bankruptcy management services for bankruptcy trustees.

Dai-Ichi Kangyo Trust Company of New York is a wholly owned subsidiary of The Dai-Ichi Kangyo Bank, Ltd., a member of Mizuho Financial Group, the world's largest financial organization with consolidated assets in excess of $1.4 trillion

Chase`s institutional trust group is one of three divisions in Chase Global Services, the bank's information and transaction services franchise. It has a global network of more than 30 offices in 12 countries, including Chase Trust Bank in Tokyo and Chase Trustees Ltd. in London, with more than 1,800 employees worldwide. Through this global network, the institutional trust division delivers a broad range of products and services, including traditional corporate trust as well as structured finance, global securities clearance, collateral management settlement services and outsourcing support to a variety of U.S. and international government agencies. The division services more than $3.0 trillion in debt worldwide. It has embarked on a program of global growth via strategic product development and marketing, aggressive investment in internet-based capabilities and a strategic acquisition program focused on adding new products, distribution channels and extending its client base.

Chase, with $426 billion in assets, is one of the world's premier financial services institutions, with operations in more than 50 countries around the world. Chase has top-tier rankings in many areas of investment banking, asset management, private banking, trading and global markets activities as well as information and transaction processing. Chase is a leading provider of financial solutions to large corporations, government entities, commercial banking clients, small businesses and individuals, and has relationships with more than 30 million consumers across the United States. Chase can be reached on the web at www.chase.com.

Business Services Industry

Chase to Acquire Dai-Ichi Kangyo's Corporate Trust Business

Business Wire, Dec 27, 2000

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