[2005-06-24]

WAM China, a leading mobile contents provider, joins the Index Group

The Index Group takes an important step forward towards acquiring top share in the worldwide mobile contents market


Index Corporation (President: Yoshimi Ogawa; head office: Setagaya-ku, Tokyo; hereinafter “Index”), a global provider of mobile and media services, has added WAM China (President: Zhan Song Hua; hereinafter “WAM”) to the Index Group of companies (*). WAM is the largest Chinese mobile contents provider that is able to deliver mobile media contents throughout China. WAM holds exclusive alliances with approximately 40 major Chinese media corporations, including domestic newspaper, radio, television and government-run media agencies.

In March of this year, Index also made one of the largest Chinese mobile contents providers, Shenzhen Skyinfo Telecom Technology Co., Ltd. (President: Liu Yi; head office: Shenzhen, China; hereinafter “Skyinfo”) a wholly owned subsidiary.

(China’s Mobile Contents Market Background)
In terms of mobile phone users, China’s market size surpassed that of the US in 2001, breaking the 300 million-user mark in May 2004. This enormous market boasts an average number of more than 5 million new registrations per month, and according to the Chinese Ministry of Information Industry, there is a potential market of more than 600 million users. Following the spread of mobile telephone usage, the mobile contents market is experiencing a period of rapid growth of over 50% per annum. Given the massive untapped market, high growth over the medium term is anticipated. Various mobile contents have been offered since 2003, and services such as WAP and MMS became available in 2004. Also in 2004, the Chinese mobile contents market size rose to 8.4 billion Yuan (approx. 105.84 bil. Yen) and it is projected to increase to 12.35 billion Yuan (approx. 155.61 bil. Yen) in 2005.

(Development of WAM and the Chinese Market under the Index Group)

With approximately 40 partner companies among China’s leading domestic media, newspaper, television stations, radio stations and government portal sites etc., WAM has affiliations with approximately 40% of the media organizations possessing licenses to distribute news throughout China. This makes WAM one of the top-level contents providers in the Chinese mobile contents market. Furthermore, by introducing the Chinese market to mobile and other media related service know-how that is held by the Index Group, WAM’s relations with China’s major domestic media corporations can be maximized, and expansion of business carried out swiftly.

WAM’s sales proceeds for fiscal 2004 totaled 73.8 mil. Yuan (approx. 959.4 mil. Japanese Yen), and posted earnings of 104.66 mil. Yuan (approx. 1.36 bil. Yen) are forecast for fiscal 2005.

Furthermore, there are plans to collaborate with Skyinfo, one of the largest mobile contents providers in China and also a wholly owned Index subsidiary. The outlook includes acquiring a market share of approximately 20% in 2006, and approximately 25% in 2007.

By making WAM and Skyinfo 100% subsidiaries, the Index Group will achieve sales in the Chinese market that approach 6 billion Yen in 2006. The Group has also set its sights on future public listings, the pursuit of related company start-ups, and the expansion of its distribution area and scale.

(Index Group Global Strategy)
By introducing WAM, which possesses strong links to leading Chinese media players, and Skyinfo, one of just five companies holding strategic partnerships with China Mobile Ltd., to its network, the Index Group is now able to conduct the greatest distribution of mobile contents throughout China. While establishing the top position in China’s mobile market, Index is also taking measures to acquire mobile content superiority on a global scale through its valued relationships with France’s 123 Multimedia SA. (CEO Patrick ABADIE, head office; Toulouse, France), US based Mobliss Inc. (CEO: Brian Levin; head office: Seattle, USA), Holland’s Yarosa Entertainment B.V. (CEO: Derk Nijssen; head office: Rotterdam, Holland), etc.

Looking towards the future, and the realization of a ubiquitously networked society, the Index Group will continue to develop new businesses with services and media generated by the latest technology, while always being attentive to stronger and more profitable bases for the Group overall. All of which is done in support of the effort to achieve a global media group that can deliver business on a worldwide scale. Please be on watch for further Index developments.

(*) WAM has become a wholly owned subsidiary of Index Asia Pacific Limited, an Index Corporation holding company focused on Asian markets, which acquired Sino Asia Management Limited, WAM's holding company.


(WAM China Corporate Profile)
Company Name: WAM China
Head Office Location: Shanghai
Established: December 2000
Representative: Zhan Song Hua
Company Employees: 168 (as of April 2005)
Business Outline: For major domestic Chinese media partners, WAM offers news and entertainment, IVR, ring-back-tones, ring-tones, games etc. for mobile phones. The company has partnerships with more than 40 different media channels, including news, television stations, radio, government news etc. WAM is also developing mobile solutions such as interactive applications that use SMS and WAP.
· Distribution of mobile contents such as ring-tones, entertainment services, and games etc, through major media partnerships
· Mobile solutions operating on SMS, MMS, IVR, RBT, WAP, etc.

www.service4media.com

(Index Corporation Corporate Profile)
Company Name: Index Corporation (JASDAQ: 4835)
Head Office: Carrot Tower, 4-1-1 Taishido, Setagaya-ku, Tokyo 154-0004
Established: September 1995
Capital: 10,773.2 million Yen (as of end of March, 2005)
Representative: Yoshimi Ogawa
Business Outline: To develop media services that offer contents and solutions through mobile affiliations and a range of media in an effort to realize a ubiquitously networked society.
· Solutions business: planning, development and sales of system services that utilize the Internet
· Contents business: planning, development and sale of contents directed at mobile and other media
· Commerce business: development and sale of merchandise services and systems that utilize various media
· Publishing business: planning, development and sale of various life-style magazines and original “mooks”.

www.indexweb.co.jp