DG Mobile Inc. ("DG-M," Head Office: Shibuya, Tokyo; President: Kazusuke Obi), which is promoting business for third-generation (3G) mobile phones, agreed with Digital Communication Engineering K.K. on June 28, 2004, to integrate their business operations. Digital Communication Engineering K.K. ("DiCE," Head Office: Minato, Tokyo; President: Yasumitsu Sakai) provides a large number of large-scale digital (mobile) promotions. Utilizing their assets, including technologies and creative marketing planning abilities, the two companies will pursue further development of the contents business for 3G mobile phones and the mobile commerce business, both being developed by DG-M, and the digital (mobile) promotion business, which is conducted by DiCE.

1. About DiCE

DiCE was set up in February 2002, taking over the know-how of Ibex & rims Corporation ("Ibex," Head Office: Chiyoda, Tokyo; President: Ryoichi Tsujii), which successfully launched Japan's first Internet-complete promotion in March 2001. Subsequently receiving capital participation of the Dentsu group, DiCE has been making plans, providing and operating systems, and supporting the implementation of promotion in a large number of large-scale digital (mobile) promotion projects carried out largely by consumption goods manufacturers. DiCE now enjoys the best reputation and track record in the industry.

With the use of broadband services spreading fast and mobile phones shifting to the third generation, both business corporations and consumers are increasingly requiring more advanced, more effective systems of digital (mobile) promotion. Through the business integration, the two companies will prepare themselves to meet this requirement by combining DG-M's rich contents technology using 3G mobile phones and e-commerce know-how with the know-how accumulated by DiCE to date.

This business integration follows the business integration of Ibex, which founded DiCE, and DG-M's parent company, Digital Garage, Inc. ("DG," Head Office: Shibuya, Tokyo; President & CEO: Kaoru Hayashi; JASDAQ4819). The DG-M, renewed by the participation of DiCE, will further accelerate the development of its business as the hub of mobile business operations in the DG group.

* Note: Details of the business integration and its method (such as business transfer) are to be officially announced in September 2004, when the integration is to take place.

About Digital Communication Engineering K.K.
Head Office: 2-17-22, Akasaka, Minato-ku, Tokyo
http://www.dice.ne.jp/
Foundation: February 1, 2002
Capital amount: 370 million yen
Representative: Yasumitsu Sakai, representative director