September 14, 2007

Approval of AII Business Restructuring Plan Revoked pursuant to Law on Special Measures for Industrial Revitalization

Pursuant to Article 6, paragraph 3 of the Law on Special Measures for Industrial Revitalization, MIC today revoked its April 15, 2005, approval of the AII Inc. business restructuring plan, in recognition that the company may not be able to implement the plan smoothly and unfailingly.

[Reasons for the revocation of the approval]
AII Inc. intended to put its business on a sound footing with B-to-C content distribution as its core business as well as existing shareholder capital increase, via a business restructuring plan approved on April 15, 2005, pursuant to Article 5, paragraph 1 of the Law on Special Measures for Industrial Revitalization (Law No. 131 of 1999).
Regrettably, AII has recently reported that it cannot continue its core business and carry out the business restructuring in accordance with the plan.
Recognizing that AII will not be able to implement its business restructuring efforts related to the plan smoothly and unfailingly, MIC today revoked its approval.

(Reference)
Outline of the AII Inc. business restructuring plan
(1) Date of approval: April 15, 2005
(2) Outline of the plan
AII will reinforce the B-to-C content distribution as its core business. By providing new services and increasing its capital, it will improve revenues and expenditures as well as efficiency in business activities.
By doing so, AII will improve the FY2007 tangible fixed assets turnover by more than 250% as compared to FY2004, before the plan started.
(3) Major supportive measure
Reduction in registration license tax for the above-mentioned capital increase
(4) Plan implementation period
April 2005 through March 2008

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International Policy Division,
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