ASATSU-DK INC. (ADK) hereby announces it has formed a business and capital alliance with Cosmo Communications Inc., effective today. Details are given below.

1. Overview of Business and Capital Alliance

Under the capital alliance, ADK purchased 30% of the outstanding shares of Cosmo Communications. To foster a smooth business partnership, ADK plans to dispatch one part-time director to Cosmo Communications.

2. Cosmo Communications

Cosmo Communications is a specialist advertising company with particular strength in magazine advertising. Its main clients are Japanese fashion and cosmetics companies. In addition to magazine media buying, it has built a strong track record in the planning and production of editing tie-up advertising, where its clients have significant requirements, as well as in the production of tie-up events.

Cosmo Communications is also strong in production in interactive media. Here, its business is spearheaded by Cosmo Interactive Inc., a subsidiary engaged in website planning, consulting, design and operation. In short, the Group provides cross-communications services with magazines at the core.

3. Purpose of Business and Capital Alliance

The purpose of the new business and capital alliance is to further reinforce and hone the aforementioned strengths of Cosmo Communications while respecting its autonomy and independence. Under the new arrangement, the two alliance partners will introduce clients to each other and formulate joint proposals, with the aim of tapping new customers and expanding market share, and thus growing together.

4. Outlook

For the time being, the effect of the alliance on ADK's consolidated results will be minimal. The Company is considering making Cosmo Communications an equity-method affiliate in fiscal 2009 or thereafter.

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