Message from the President and CEO

Expansion of Our Global Marketing Support System

   Thank you for your generous support and patronage. We would like to inform you that the results of our second quarter for the fiscal year ending May 2012 were announced on Thursday, January 12, 2012.

This year, we continue our efforts by proactively promoting measures to develop and provide services with high added values, while expanding toward global marketing-related business areas through utilizing our business experience in search engine marketing (SEM) to respond to the need for AUN Group to implement business structure conversion and expansion, which are our major business challenges.

First, as part of our domestic and overseas common business undertaking, we began providing a group-wide enhancement of our complete result-reward SEO (search engine optimization) service offered since June 2011. Our complete result-reward SEO service oriented for overseas search engines is the first of its kind. Thanks to the low hurdles for the introduction of this service and our meticulously sales activities optimized for the globally oriented Japanese/Western companies and localized companies, we have been able to smoothly expand our sales both domestically and overseas. We will continue to further enhance our global marketing support system, while striving to provide a wider range of services domestically and overseas.

We have also begun promotional activities focusing on marketing information through using Facebook, one of the social media showing rapid growth also in Japan. We plan to create attractive channels by tapping into the local networks of our business bases to improve the recognition of our global marketing.

In terms of our translation service, we handle 64 languages from 22 countries around the world, including English, Chinese (simplified and traditional) and Korean, serving companies in their global expansion through providing multilingual support. We are steadily expanding our sales through our network of experienced translators in Japan and overseas and with our dedication to quality and convenience.

With regard to More, our multilingual travel/lifestyle information website, we are now beginning to reap from our efforts and sales at each of our local bases have increased as a result of our focus on ad sales.

While their undertakings have led to a profit decrease in terms of business results compared to the same period of the previous year, the overall results are as expected.

As a result, sales for the current consolidated second quarter of the fiscal year came to 712 million yen (42.4% down from the same period of the previous year), with an operating loss of 90 million yen (82 million yen in the same period of the previous year), an ordinary loss of 82 million yen (83 million yen in the same period of the previous year), and the net deficit of the quarter at 82 million yen (99 million yen in the same period of the previous year).

We look forward to your continued generous support and guidance.