NRI to Substantially Expand BPO Business-- Making NRI BPO Services a wholly owned subsidiary and establishing a 100 percent subsidiary in Dalian --

Nomura Research Institute, Ltd. (NRI: Tokyo; Tadashi Shimamoto, President, CEO & COO) will make NRI BPO Services, Ltd. (Tokyo; Toshiaki Naito, President & CEO) a wholly owned subsidiary and will increase its capital to strengthen the business offering outsourcing services. As of July 1, 2010, the name of this subsidiary will be changed to NRI Process Innovation, Ltd. In addition, in October of this year, a 100 percent subsidiary will be established in Dalian, China.

On April 1, 2009, NRI established NRI BPO Services jointly with InfoDeliver Corporation (Tokyo, Jie Shang, CEO). With a total of 80 service staff members working in Japan and China, the company has provided financial institutions with high value-added BPO* services such as database management and work needed to calculate a mutual fund’s net asset value per share.

Subsequently, to meet growing outsourcing needs in a wider range of areas and to better respond to the requirements imposed on financial institutions to strengthen internal control of consigned work, it was decided to increase the capital of the company and purchase InfoDeliver’s equity stake (49%), thereby reinforcing the operational structure to promote the BPO business. At the same time, as of July 1, the name of the company will be changed to NRI Process Innovation, Ltd.

By drawing on NRI’s expertise and experience, NRI Process Innovation will optimize the business processes of its customers, and provide services offering a high degree of added value. In addition, the company will expand its business activities by focusing on BPO services targeted at asset management companies for which the company already has many achievements and, at the same time, moving into other financial fields where NRI enjoys a large share in systems solutions.

In order to reinforce the operational structure for offering outsourcing services further, NRI decided to establish a 100 percent subsidiary in Dalian, China (NRI Dalian) in October of this year. NRI Dalian will offer BPO services and related consulting services.

In the future, while continuing alliances with InfoDeliver, NRI Process Innovation and NRI Dalian intend to increase the number of targeted business categories and expand its targeted business activities, thereby substantially strengthening NRI Group’s BPO business.

An outline of these companies is given below.

■ NRI Process Innovation, Ltd.(Planned as of July 1,2010)
President and CEO	Katsuhiko Fujita (currently the director of NRI’s Business Process Innovation Department)
Location of head office	Yokohama Dia Building, 1-7 Kinkocho, Kanagawa-ku, Yokohama, Japan
Capital	¥495 million (100% investment by NRI)
Business activities	(1) Outsourcing services for asset management companies (2) Outsourcing services for other companies in a wider range of fields (3) Consulting services related to the above
Company profile (in Japanese)	http://fis.nri.co.jp/service/bpo/process.html
Date the company name will be changed	July 1, 2010 (to be changed from NRI BPO Services, Ltd.)

■ Nomura Research Institute (Dalian), Ltd.
Location of head office	Dalian High-tech Industrial Zone, Dalian, China
NRI’s investment ratio	100%
Planned date of establishment	October 2010
Business activities	(1) Outsourcing services such as data input and information processing (2) Related consulting services

*BPO stands for "business process outsourcing," and refers to the contracting of some or all of a company’s business activities ranging from planning to operations to a third-party service provider.