DG Mobile Inc. (“DG-M,�EHead Office: Shibuya, Tokyo; President: Kazusuke Obi), a strategic subsidiary for the mobile-related business of Digital Garage, Inc. (“DG,�EHead Office: Shibuya, Tokyo; President & CEO: Kaoru Hayashi), entered into partnership with the 2 companies mentioned below respectively on February 23, 2004 for the business development of the mobile contents business in the China region. This is an effort to enhance the sales of “Mobile Comic Solution�Ewhich DG-M is promoting as well as to develop businesses such as the distribution of Japanese comic contents to mobile phones and contents business that complies with 3G mobile phones in the respective region, through collaboration with those companies.

1. Business development partnership in China

DG-M has partnered with JCD Co.,Ltd., which has a substantial track record in the mobile contents business in China, in the areas of marketability research and business development for the contents and technologies conforming to the 3G mobile platform. This is already in the preparation stage and will be accelerated from this year in China, which is a “mobile power�Ehaving 20.8% penetration with 63 million new subscribers in 2003, making it the world’s largest mobile phone country with the total subscribers of 269 million at the end of 2003.
DG-M will collaborate with JCD for the development of the “Mobile Comic Solution�Ewhich DG-M is promoting and new technologies related to contents matching with 3G mobile phones, as the contents business for 3G mobile services in China.
JCD set up its local subsidiary MOBILE NAVI(BEIJING)CO.,LTD. in Beijing in 2001, and provides contents distribution services for the users of China Mobile, which is the largest mobile carrier in China. MOBILE NAVI (BEIJING) CO.,LTD. is the first Japanese-owned business to acquire an “ICP (Internet Contents Provider) license�Eapproved by the China Information Industry Ministry, and is the sole Japanese-owned company to be a “WAP Strategic Partner�Eof China Mobile. It is positioned as having the second largest market share with 1.2 million charged subscribers at the end of January 2004, and was awarded the best performer of WAP charged contents for ChinaMobile in 2003.
Through the partnership, DG-M will accelerate the business development in China for contents-related technologies and business models of Japan, which is one of the most advanced countries in the world in terms of 3G mobile penetration, as well as for the world-class Japanese contents typified by comics, putting the resources of those companies in place.

JCD Co.,Ltd.
Head Office: Higashi-ueno Center Bldg., 2-1-13 Higashi-ueno, Taito-ku, Tokyo
Tel: 03-5806-4411 Fax: 03-5806-4412
http://www.jcd.co.jp/
President: Xu, Zhimin

Local subsidiary in Beijing: MOBILE NAVI (BEIJING) CO.,LTD. (MNC)
http://www.mnc.com.cn

2. Business development partnership in Taiwan

DG-M has partnered with EZ Mobi (EzMobi Mobile Entertainment Inc., Representative Directors: BlankName1) to promote establishing the contents business for Internet accessible color display terminals which are being rapidly widespread in Taiwan, where mobile phones are said to have penetrated more than 100% (24 million subscriptions against 23 million population). EZ Mobi plans to start distributing the contents in March 2003 as a contents provider certified by Chunghwa Telecom of Taiwan, in “emome.net�Ethat Chunghwa Telecom provides to its subscribers. Following Chunghwa Telecom, negotiations are in progress also with other major carriers for certification.
DG-M will provide EZ Mobi with the “Mobile Comic Solution�Etechnology information which has already been provided in Japan, in order to build the foundation for the distribution business (in terms of technology and operation) of Japanese comic contents for mobile terminals in Taiwan through collaboration efforts.