DG Mobile Inc. ("DG-M," Head Office: Shibuya, Tokyo; President: Kazusuke Obi), , which is promoting business for third-generation (3G) mobile phones, agreed with Web Progressive Inc. on May 18, 2004, on a strategic alliance for the development and production of contents in the mobile contents business. Web Progressive Inc. ("WP," Head Office: Chiyoda, Tokyo; President: Masahiro Aiga) is a subsidiary of Shogakukan Inc. that is primarily engaged in the business of producing entertainment contents. Utilizing their assets, including technologies and creative abilities, the two companies will produce new comic contents newly written for the Mobile Comic Solution, the comics distribution service for third-generation mobile phones being promoted by DG-M, as well as finding and training new creators.

1. About the strategic alliance

DG-M has been making efforts to expand sales and use of the Mobile Comic Solution, the integrated technological infrastructure for distributing comic contents to 3G mobile phones, which are coming into an increasingly widespread use. DG-M had sought a partner able to intensively and continuously produce and develop newly written comic contents that best match this new technology and to become a provider of the new entertainment contents via cellular phones.

On the other hand, based on the planning and editing know-how of Shogakukan, WP has been planning and producing digital contents, developing and training characters, and creating educational and learning contents. WP was looking for opportunities to display its ability to create contents in the field of mobile phone contents business.

To take advantage of this strategic alliance, they will commence activities to establish an entertainment business for 3G mobile phones. Specifically, WP will continuously and newly create and provide mobile comic contents featuring such distinctive characters as "Attacken" and "Mikarin" and will develop the business of providing these contents and characters in other media (such as printed publications and merchandising). In addition to providing the Mobile Comic technology, DG-M will be responsible for making contents distribution data and installing distribution systems.
In their 3G mobile contents business based on this alliance, the two companies aim to acquire a total of 200,000 subscribers (members) in two years. They will make efforts to develop new popular characters through mobile phones and find new comic creators.

2.About Web Progressive Inc.
Head Office: Showa Bldg. 3F, 2-30, Kanda Jinbo-cho, Chiyoda-ku, Tokyo
Tel: 03-3512-0091 Fax: 03-3230-2130
http://www.web-progressive.com
Capital amount: 980 million yen
Shareholders: Shogakukan Inc. 75%
NEC Corp. 15%
CAC Corp. 10%
Representative: Masahiro Aiga, President

3. About DG Mobile Inc.
Head Office: Yamazaki Bldg. 2F, 2-43-15, Tomigaya, Shibuya-ku, Tokyo
Tel: 03-5452-0355 Fax: 03-5452-0356
http://www.dgmobile.co.jp
Representative: Kazusuke Obi, President