Coopers & Lybrand Appointed as Outside Auditor in Sumitomo Corporation's Investigation of Trading Losses; "Big Six" accounting firm to work with outside counsel to identify causes of "breach of Company's ethical and professional standards"; Paul, Weiss and Coopers & Lybrand to advise Company on changes in controls and procedures; Mr. Miyahara emphasizes Company's commitment to learn the facts and take "necessary and appropriate" steps.

TOKYO and NEW YORK--(BUSINESS WIRE)--July 1, 1996--Sumitomo Corporation today announced that the prominent "Big Six" accounting firm of Coopers & Lybrand L.L.P. has been retained to assist in leading a thorough internal investigation of Sumitomo's unauthorized copper trading losses.

"When Sumitomo Corporation announced that it had discovered serious unauthorized transactions in its copper trading operations," said Mr. Kenji Miyahara, President of Sumitomo Corporation, "we fully committed ourselves to continuing our active cooperation with the regulatory authorities, and we announced that our outside counsel, the New York City law firm of Paul, Weiss, Rifkind, Wharton and Garrison, was undertaking a full internal investigation on behalf of the Company.

"As authorized by the Company, Paul, Weiss has retained the prominent, independent accounting firm, Coopers & Lybrand, one of the "Big Six" accounting firms in the world, to aid in our internal investigation. Coopers & Lybrand has a broad range of relevant and highly sophisticated experience for this assignment. The firm has worked with regulatory bodies in the United States, the United Kingdom and elsewhere on a wide array of major issues."

According to Mr. Miyahara, Paul, Weiss and Coopers & Lybrand -- assisted by an intra-company team of Sumitomo managers, auditors and lawyers -- will:

-- Examine all the facts to establish exactly what occurred in terms of the specific trading activities and the reasons for the losses;

-- Determine what, if any, weaknesses or failures in management and control systems may have contributed to the problem; and

-- Provide the Company with detailed, expert advice on the establishment of new or improved controls and procedures to enhance, to the greatest extent possible, the chances that such unauthorized activity will not recur.

"We are totally committed to doing everything possible to learn what happened -- and why -- with regard to this terrible breach of our Company's' long-standing, clear and strong standards of ethical and professional conduct," Mr. Miyahara said. "When the investigation is complete, we will take whatever steps are required to address these issues, including changes in our systems and procedures of supervision, audit and control that are necessary and appropriate to ensure that nothing like this could ever happen again at Sumitomo," Mr. Miyahara concluded.

Coopers & Lybrand operates worldwide. In the UK, it has been appointed by major corporations and by the Serious Fraud Office, the Securities and Investments Board and the courts to assist in the investigation of alleged violation of financial regulations.

Coopers & Lybrand has helped leading financial companies to redesign, organize and evaluate their market surveillance activities and to develop technology platforms to perform sophisticated surveillance and compliance functions integrated with financial controls. The firm also has assisted its clients in evaluating trading and risk management practices, redesigning and strengthening operating controls, auditing and enhancing management information systems for securities trading operations, evaluating policies and procedures, and reviewing sales and other operating practices.

Headquartered in Tokyo and Osaka, Sumitomo Corporation is one of the world's leading traders and distributors of commodities, industrial goods and consumer products. In addition to its role as a trader in a wide range of commodities, including copper and other metals, Sumitomo Corporation is active in such diverse businesses as oil, chemicals, construction, real estate, media and communications, electrical machinery, automobiles, ship building and finance.

CONTACT: Sumitomo Corporation, Tokyo

Yasutomo Katsuno, 03-3217-5061

or

Robinson Lerer & Montgomery, New York 

Walter Montgomery, 212/484-6721