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o Capcom • Leading video game developer and publisher • Holds more than 40 “million seller” original Intellectual Properties • • • • Lost Planet • o Capcom Interactive • Developer and publisher for the mobile platform in the Americas • 100% wholly owned subsidiary of Capcom • Established in June 2006 • Headquarters and publishing division in Los Angeles • Development studio in Toronto, Canada • Fastest growing mobile publisher in North America • Sister companies operate in Japan and EMEA Publishing

o Distribution • Direct distribution with all 15 carriers in North America • Operates a Tier 1 carrier’s WAP business • Conducts more than 500k unit and subscription downloads per month

o Management • Experienced management from entertainment, wireless and video game industries and from Fortune 500 companies Product Portfolio

o Product Portfolio • Balanced product portfolio to address both “casual” and hardcore game players • Acquires select high-profile 3rd party licenses • Award winning games • Best of 2007 • 3GSM Global Awards o World class in-house studio • Proprietary dynamic coding techniques and designs • Maximize code compatibility • Faster to market • Cost effective Capcom Interactive Corporate video Evolution of Mobile Content o NTT DoCoMo pioneered digital content distribution on mobile o North America is 2 – 3 years behind, but gaining momentum o Wireless carrier’s role creates a different business model and service

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● ● Music SNS download ● mMODE ● 3D ● Movie -Browsing Mobile TV erica -Ringer Game -Wallpaper N.Am -Game (Java, BREW) ● Motion sensor ● PS1 class ● Digital TV Game ● SNS ● Full Music ● 3D ● Ad-supported Download ● 2D Mobile Japan ●iMODE Mobile Game -Browsing Game ● Mobile -Ringer (Pac-Man) wallet -Wall paper (Felica) Mobile Game Industry - Opportunity

North America Japan

o Approximately $2 billion / 300% o Approximately $1 billion business growth by 2012 o The most experienced and educated consumers o North America projected to be one of the biggest markets in the next 5 years o Mobile phone: World class consumer gaming platform • Hardware comparable to o Mobile phone: Potentially the PlayStation for gaming biggest consumer gaming platform • 250 million units in the o Fastest network with flat data rate marketplace • Captures both hardcore and o Open distribution enables a new casual gamers business models to develop Mobile Game Industry - Challenge

North America Japan

o Fragmented market and platform o Rapidly advancing platform • Approximately 15 carriers o Rapid evolution in content • 8 – 10 handset OEMs • 5 ~ 10 MB (3D) game • Increasing costs in development • Increased costs in principle (porting, optimization and QA) development

o Platform and hardware hinders o Low barrier to entry, anybody can development be a publisher • Limits innovation and game • Highly competitive market genres o High customer churn rate o High barrier to entry • Monthly churn - 50~ 80%

o Limited distribution and marketing Carrier’s Role and Business Model

North America Japan “Proxy Controlled Distribution” “Open Distribution”

Carrier’s role: Carrier’s role: o Platform and Solution Provider o Platform and Solution Provider o Service by a carrier brand o Billing and Remittance • Host, QA, distribute, and billing and o Service by a publisher brand remittance • Publisher develop, QA, host, and • More burden and risk on carrier distribute the content directly to end-user • Select a business partner o No editorial right o Holds editorial right o Small commission charge model o Revenue share model

o More opportunities for innovative o Closed and exclusive club players “Members Only” o More opportunities for new services, o Maximize opportunities within club and innovative business models Value Chain

North America Japan

Rights holder Rights Holder Porting house Technology Provider o Company that ports o Middleware for the application Technology games and optimizes Developer for the 300+ handsets o System provider for Provider the channel and site o Unique to North management America / Europe Porting House Developer Publisher = Publisher Rights holder or Publisher Publisher o Company takes the o Broadcasters financial risk to bring o Record labels the game and Carrier o Game publisher Consumer Carrier application to the market Publisher = o Carriers select a Consumer Technology Provider handful of publishers to partner “Mobage-town” (Mobile Gamer Town)

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Sponsored site Capcom Strategy o Owns and controls every value chain • Intellectual properties to publishing o Develops and publishes games which are best suited to the region • Balanced product portfolio in North America • Most advanced 3D game in Japan o Creates a strategic marketing plan to meet the local audience needs • Millionaire TV show promotion o Hire the industry experts in each local market o Capcom Interactive became one of the fastest growing publishers in North America in ‘07, and will continue to be a major publisher