Digital Garage, Inc. (“DG,�EHead Office: Shibuya, Tokyo; President & CEO: Kaoru Hayashi) decided to set up a strategic business subsidiary in the mobile phone/mobile business area named “DG Mobile Inc.�E(“DG Mobile�E at an extraordinary board meeting held on January 5, 2004, and reached an agreement with Celsys, Inc. (Head Office: Shibuya, Tokyo; President: Yosuke Kawakami) for collaboration in the contents related technologies of that business area, as well as with B.U.G. Inc. (“BUG,�EHead Office: Sapporo, Hokkaido; President: Hiroyuki Hattori) for collaboration in the area of distribution technologies.

Partnership with Celsys
Celsys was founded in 1991 to pursue businesses involved in the development and distribution of computer software as well as in multimedia contents production, focusing on the “area where graphics and programming blend with each other�E The animation production assisting system “RETAS!PRO�Edeveloped by Celsys has become a de facto standard in the domestic animation production industry.
Celsys has recently been involved in the digitization of the comic production process in Japan, introducing a successive range of software for this category since its release of “Comic Studio Ver.1.0,�Ethe world’s first comic production software, in August 2001.
With this “Comic Studio�Eat its core, the company has been working on the “establishment of a distribution foundation for the digital contents of comics�Esince 2003, including the digitization of new comic production and existing comic publications, the prescription of contents data format, and a range of software for displaying on PCs, PDAs and mobile phones. The formal release of each software was started in the fall of 2003.
DG accepted the third party allotment of new shares implemented by Celsys on October 31, 2003, and invested 20 million Yen to hold 125 stocks (2.53% of the total outstanding stock volume).
Celsys, Inc. (http://www.celsys.co.jp)
(Representative) Yosuke Kawakami, President
(Head Office) 4-27-25, Yoyogi, Shibuya-ku, Tokyo 151-0053 Japan
(Capital amount) 297 million Yen
(Foundation) May 1, 1991

Partnership with BUG
BUG, based in Sapporo, is one of the best software developers in Japan, with comprehensive technologies and a longtime abundant track record in several areas including contents management such as DTP and communications network, leveraging the image processing technology as its core part. In addition to taking a stake in DG Mobile from the start-up, BUG will provide technical cooperation in the contents management and distribution systems for 3G mobile phones, and both companies will collaborate in areas such as the service business for corporations making the most of those systems.
B.U.G. Inc. (http://www.bug.co.jp)
(Representative) Hiroyuki Hattori, President
(Head Office) 1-14 Techno-park 1-chome, Shimonopporo, Atsubetsu-ku, Sapporo 004-0015 Japan
(Capital amount) 165 million Yen
(Foundation) October, 20.1980