According to a survey by CM Databank, our EVER commercial that includes the jingle has been consistently rated as the number one or number two commercial in the life and non-life insurance category.

We believe our "Number One in Medical" advertising campaign is an effective means for distinguishing our products from those of our competitors and bolstering our brand image. Research shows that among the various medical insurance products available in Japan, Aflac's is the most preferred. And consumer studies have also shown that 78% of consumers want to choose the most popular policy. It's clear that most preferred is one of the key factors in consumers' decision making. And we believe the impact of our "Number One in Medical" campaign can be seen in the solid improvement of medical sales in the fourth quarter of 2004.

Outlook for Aflac Japan

We believe Aflac is well-positioned in Japan's supplemental insurance market. Although we are the market leader in this growing segment, we will not rest on our laurels. Instead, we will continually work to improve our operations. We believe Aflac is the best-branded company for supplemental products because we offer the best products at the best prices with the best commissions. More and more consumers are recognizing that Aflac products empower them to take back some of the control that life can take away. To help us further tap into the Japanese market, we will:

• Expand our product line – We will develop new policies and modify existing products to meet the changing needs of Japanese consumers and help them cope with increasing costs of medical care.
• Grow our distribution system – We will recruit more sales agencies, particularly individual agencies, to tap into the small and medium-sized business markets.
• Improve operational efficiency – We will invest in new technologies and improve business processes to extend our primary competitive strength.
• Emphasize our financial strength – Our strong balance sheet and financial strength ratings let consumers know we can keep the promises we have made.