GREE and GyaO Enter into Framework Agreement to Establish Joint Venture- New company to manage fund for investment in animation content -

TOKYO, Japan – February 25, 2013 – GREE and GyaO Corporation (“GyaO”), an online content provider and subsidiary of Yahoo Japan Corporation (“Yahoo! JAPAN”), today announced that they have entered into a framework agreement to establish Future Content Partners, Inc. (“Future Content Partners”; tentative name), a new company that will form and manage a fund targeting investment in Japanese animation (“anime”) content.

Japan's anime market was estimated to be worth ¥219.7 billion in 2011,¹ and continued growth during the past three years in the online distribution of anime has highlighted the potential for further growth in the overall anime sector. Anime production- and character-related business is growing and total annual retail revenues in the merchandising sub sector of Japan's anime industry now exceed ¥1 trillion. On November 8, 2012, GREE and Yahoo! JAPAN entered into a business partnership aimed at combining compelling content and powerful media reach to produce new entertainment. As part of this partnership, GREE and GyaO aim to contribute to the creation of compelling new entertainment content by establishing Future Content Partners as a vehicle for pursuing opportunities in investment in production of new anime content.

Future Content Partners will not only engage in investment in the production of anime content, but will also manage the use, in online distribution and in social games, of intellectual property arising from anime content produced as a result of its investments. Through the development of this IP, it is hoped that the new company will open up new possibilities in anime content business, while contributing to the growth of Japan's anime content industry as a whole.

GyaO plans to work with Future Content Partners, GREE, and Yahoo! JAPAN to launch a dedicated anime information portal site for the provision of information on content from games to video content and digital books.²

Building on this agreement, GREE and GyaO plan to work together toward the production of compelling content and in doing so help to create new value in the entertainment sector.