ORIX Announces Capital Participation in Major Middle East Insurance Company MEDGULF
- First Participation in Insurance Business in the Middle East toward Diversification of
its Financial Service Business -

TOKYO, Japan – June 12, 2013 - ORIX Corporation (TSE: 8591; NYSE: IX), a leading integrated financial services group, today announced that it has reached basic agreement to acquire approximately 25.7% of issued shares in one of the largest private insurance companies in the Middle East region, The Mediterranean and Gulf Insurance and Reinsurance Company B.S.C., based in Manama, Kingdom of Bahrain (hereinafter, "MEDGULF"). Moving forward, ORIX will proceed to obtain the necessary permits in view of investment during this month.

After its foundation in Lebanon in 1980 as an insurance industry pioneer in the Middle East region, MEDGULF was established as a holding company in Bahrain in 1995. Today MEDGULF is a business group with insurances businesses throughout the Middle East in Saudi Arabia, Lebanon and Jordan and also in the United Kingdom. In Saudi Arabia, which has become the core of its business, MEDGULF has developed its business by concentrating on corporate health insurance and controls the second largest  listed Insurance Company on the Saudi Stock Exchange (Tadawul). MEDGULF has constructed a robust business base in the Middle East including in Lebanon, which has the oldest and most developed insurance business in the Middle East, where MEDGULF has become the largest domestic insurance company through the development of its mainly health and automobile insurance business.

The penetration rate of insurance with respect to the GDP in the Middle East remains one fifth of the level of  developed countries at less that 2%^*1. In addition, with the background of economic growth and population increase in each country and also the transition of compulsory insurance systems^*2 from the government to the private sector as a means of reducing government expenditure, looking ahead we expect an even further increase in insurance demands.

Among these demands, in Saudi Arabia, the government began making it compulsory for all private companies to enroll their employees in health insurance in stages in 2006. Looking ahead, even further growth in the private insurance market is expected, as we expect for the coverage of compulsory insurance to be expanded to employees of state-owned enterprises and sole proprietors.

Since moving into Oman in 1994, ORIX has expanded its leasing business in the Middle East along side leading local partner companies in Saudi Arabia, the United Arab Emirates and Kazakhstan. Through a strategic partnership by capital participation with MEDGULF who has both a strong brand and a high market share in the Middle East, ORIX aims to improve its presence in the Middle East region and diversify its financial service business while capitalizing on the growth of insurance markets in the Middle East.   

Through the decision to acquire the Holland based global asset management company Robeco Groep N.V. in February 2013 and make capital participation in the major Mongolian financial group TenGer Financial Group in May 2013, ORIX is expanding its asset management business on a global scale and actively promoting investment in financial service businesses in developing countries in which high growth is anticipated. Moving forward, ORIX will continue to further expand its global business base.

*1 Swiss Reinsurance Company "World Insurance in 2011."  Insurance Penetration Rate = Percentage of Total Insurance Revenues against GDP.
*2 Compulsory insurance for a fixed number of people by Law. In Japan, these include National Health Insurance, Compulsory Automobile Liability Insurance etc.

■ Overview of MEDGULF

Company Name	The Mediterranean and Gulf Insurance & Reinsurance Company B.S.C.
Location	Manama, Kingdom of Bahrain
Representative	Lutfi Fadel El Zein (Chairman and Founder)
Established	1995 (Founded 1980)
Share Holders	SLH Holdings 60.175% ORIX 25.752% International Finance Corporation 14.073% (Capital Participation from June 2012)
Business	Insurance
Main Offices	Saudi Arabia, Lebanon, Jordan and United Kingdom
Website	http://www.medgulf.com/default.aspx

Contact Information
ORIX Corporation, Corporate Planning Department
TEL : +81-3-3435-3121 / Fax : +81-3-3435-3154
URL : http://www.orix.co.jp/grp/en/

About ORIX
ORIX Corporation (TSE: 8591; NYSE: IX) is an integrated financial services group based in Tokyo, Japan, providing innovative value-added products and services to both corporate and retail customers. With operations in 28 countries and regions worldwide, ORIX’s activities include corporate financial services, such as leases and loans, as well as automobile operations, rental operations, real estate, life insurance, banking and loan servicing. For more details, please visit our website at:  http://www.orix.co.jp/grp/en/