Establishment of a Joint Venture in Thailand

2011/11/25

DIGITAL Hearts Co., Ltd. ("DIGITAL Hearts") announces that, on November 25, 2011, the board of directors decided establishing a joint venture in Bangkok, Thailand with 3 companies, DIGITAL Hearts, MHCB Consulting(Thailand)Co.,Ltd. ("MHCBCT"), and Digicrafts Co.,Ltd. ("Digicrafts").

1. Purpose of Establishing the Joint Venture
Viewing overseas markets where debug needs are growing as new sales channels, DIGITAL Hearts has been actively working on expanding business overseas, such as establishing DIGITAL Hearts Korea Co.,Ltd. in July 2011 and DIGITAL Hearts USA Inc. in October 2011. Also, in addition to the core business of user debug, we have been promoting 3D content production work as a new business from January 2011. In that business, we have also been strengthening sales and operation structures in close communication with overseas offices.

On the other hand, in the game related markets around the world, there is an increasing demand for adaptation to enlarged production scale as well as high-quality, highly effective development due to increased capacity of hardware and a boom of social games.

Under such circumstances, we have been recognizing that it is absolutely necessary to secure a work base for enhanced cost competitiveness in order to accelerate overseas expansion we have been working on.

As a result, this time, the 3 companies, DIGITAL Hearts, MHCBCT whose core business is security investment business and consulting business in Thailand, and Digicrafts who entered into a business alliance with DIGITAL Hearts in August 2011, decided to establish the joint venture.

Our group consider the sales bases in Korea and USA and the work base in Thailand as operating bases of overseas expansion, and we will pursue farther sales channel development.

2. Outline of the Joint Venture