GDH acquires 100% of Warp Gate Online Company to enter online game business 2005.09.12 GDH K.K ("GDH"; headquarters: Tokyo; President: Shinichiro Ishikawa) announced today that GDH will acquire 100% of the stock of Warp Gate Online K.K. (Warp Gate Online: headquarters: Tokyo, president Takeshi Suetake) as part of the company's bid to enter the online game field. GDH will acquire all 20,000 shares of Warp Gate Online. Warp Gate Online operates an online game business in Japanese market using Knight Online, a Windows MMORPG game supplied by MGAME in Korea (see note 1). Warp Gate has more than 200,000 subscribers (7th place in terms of the number of domestic accounts in Japan (see note 2)). Leading the industry with innovative methodology including item development unique to Japan and adopting a billing system, Warp Gate Online expects more than 400 million yen sales in 2005, accounting for more than 300% growth from the \129 million recorded by the company in 2004. In addition to MMORPGs, Knight Online provides a wide range of ways to enjoy games through an international environment wherein users in Japan and other countries can develop large scale battles unlike general Japanese games and also players can engage in marriage ceremonies and other community events from inside the game. Also, GDH has planned and developed animations from popular online games in 2004 to provide a vehicle for the company to acquire users through collaborative services with online games. Based on this experience, GDH plans to provide better services to users by increasing the number of Warp Gate Online users and collaborating between game events and animations. In addition, GDH is pursuing the release in rapid succession of animations by the GDH group leading brand GONZO in the form of online games to increase availability. In this way, GDH will proactively support Warp Gate Online and in terms of market share within three years aims to reach the top of the industry. Following its entry into live action movies, GDH is entering the online game business with the intent of actively expanding its business in related fields in which its core animation business, which was established inside and outside the country with the GONZO brand, can be leveraged to the maximum amount possible. GDH is working hard in new business areas as part of its drive to become a leading company that provides a wide range of digital content. Note 1: MMORPG = Massively Multiplayer Online Role Playing Game Note 2: Source: 2005 Online Games Whitepaper (by Media Create Co., Ltd.) [ About Warp Gate Online ] Warp Gate Online is a spin off of the online game division of Terra Corporation, which is a Internet player on a global scale. Knight Online, a very popular game of battles between humanity and evil, has a total of 200,000 subscribers in Japan and more than a million registered users in Korea. Unlike usual MMORPGs, players in different countries can play this game and Warp Gate Online also sells weapons and items used in the game to pursue high customer satisfaction. Visit Knight Online Official Site: http://www.knightonline.jp/ [ About GDH K.K ] GDH (Security code: TSE Mothers 3755) is a global Japanese company founded in February 2000 specializing in GONZO brand animations created by its group companies. GDH controls the overall business management strategies of its group companies, including title licensing management and overseas sales. GDH is a leader in content development that actively promotes both domestic and global reach in Japan's animation culture, which is well-known worldwide. For additional information, visit www.gdh.co.jp. For information about GONZO titles, visit http://www.gonzo.co.jp/index.html. ## Company names and service names in this document are trademarks or registered trademarks of their respective owners. ##