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Magnetic Laboratories Co., Ltd.

Magnetic Laboratories Co., Ltd. CORPORATE PROFILE January 2010. Corporate Info. Name: MAGNETIC LABORATORIES CO., LTD. Establishment: March 1979. Capital : JPY450,000,000 Annual turnover : FY2007 JPY 7.7B FY2008 JPY 8.3B FY2009 JPY 10.0B

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Magnetic Laboratories Co., Ltd.

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  1. Magnetic Laboratories Co., Ltd. CORPORATE PROFILE January 2010

  2. Corporate Info • Name: MAGNETIC LABORATORIES CO., LTD. • Establishment: March 1979. • Capital : JPY450,000,000 • Annual turnover : FY2007 JPY 7.7B FY2008 JPY 8.3B FY2009 JPY 10.0B FA2010 JPY 20.0B (Forecast) • President / CEO: Kuniyuki Saito • Number of staff: 100 • Main Bank: Mitsubishi Tokyo UFJ Bank / Mitsui Sumitomo Bank Mizuho Bank/Yokohama Bank/Shoko Chukin • Trading Products: Memory recording media products Flash memory Internet Security Devices Portable application PC peripherals & accessories Enterprising Duplication Re-Pack for Outlet. • Headquartes: 1-17, Sakumacho, Kanda, Chiyoda-ku, • Tokyo 101-0025 Japan Tel: +81-3-3253-5811 Fax: +81-3-3253-5815 http://www.mag-labo.jp

  3. Network • Duplication Center： 4-23, Katayama Building, Kandasakuma-chuo,Chiyoda-ku,Tokyo TEL: +81-3-3865-4632 • Osaka Offic 4-2-21, Minamihonmachi, Chuuou-ku, Osaka-City TEL: +81-6-6253-1755 FAX: +81-6-6253-1756 • Fukuoka Office： 7F, Fukuoka Fuji Building, 2-8-49 Tenjin, Chuo-Ku, Fukuoka-City, Fukuoka TEL: +81-92-716-7678FAX: +92-92-716-7681 • Disty Center： c/o Fukuyama-Tsuun, 3F,1-13-6 Shinsuna, Koto-Ku, Tokyo TEL: +81-3-5632-1451FAX: +81-3-5632-1452 • Outlet Center： 15-1, Honda Oaza Kitashinoyamazaki, Kazu-City, Saitama TEL: +81-480-68-5488 • Dubai Office： 153, Techno City, Al Khaleej Centre, P.O. Box 51779, Dubai,U.A.E. TEL: +971-4-359-1972 FAX: +971-4-359-1975 • Taiwan Office： 5F, No249, Guangming 6th Rd, Jhubei City,Hsinchu County 302 Taiwan TEL & FAX: +886-3558-6148 • Israel Software Development Center: Profit House, 6th Floor2 Yagur Street, Haifa 32626 Israel TEL: +972 4 832 0555 FAX: +972 4 832 0550 • Korean IT Solution Center: TEL: +82-2-568-5744 FAX: +82-2-568-5895 Head Office Osaka Office Fukuoka Office Duplication Center Distribution Center Outlet Center Dubai Office Taiwan Office Israel Office Korea Office

  4. Business Outline Trading House for Media Products We are one of the largest wholesaler share for the line of products of FD,CD-R, DVD-R, Flash memory and duplication business in Japan. We have opened the market for the portable application business, character item Businesses in 2009. Our initial target is 15% share in the Japanese market. Main Products FD・MO・MD・CD/-R/-RW・DVD/±R/±RW/RAM/DVD for the next generation, Flash memory card、Video tape、Media Copy Protect item, Duplicator Digital Photo Frame, PC Accessories Case for the Media etc… Taiyo-Yuden・Mitsubishi kagaku media・ MAXELL・SONY・IMATION・ TDK・PRINCO・BENQ・CMC・UMEDISC・RITEK・OPTODISC ・ GIGASTORAGE KingMax・AXXEN・ejector・HexaLock・AllPro、TrusCont、Kodak MediaChilin、Kodia、Seahan Media,Nexcopy、Nanovision、Amstar Technology Manufacturers Main business Accounts Each Major retailers,wholesalers, Home center (DIY stores?), record companies, Major corporation, the Imperial Household Agency, Post pro function…etc

  5. Business structure We are the largest media enterprise in Japan, handling all sorts of memory media products. We sell flash memory, USB memory, PM3 player, floppy-discs, video tapes, digital photo frame, pc accessories, photo accessories, duplicator, potable application etc. Wholesale Media ・The Biggest share in Japan. ・Expand sales in overseas ・Development of security related products ①Meet the diverse needs of customers. ②Handling various services ③Developed many PB brands. ・Selling items largely increased with the collaboration of manufacturers. ・Portable applications for USB memory have a great demand. ・TurboVaccine（Anti-Virus ）・Perfect Eraser（deleted file）・Raviro（sending/receiving email） Wholesale OEM Duplication Flash relatedservices Solution Service Duplication Service Copy Protect ・The biggest Duplication store in Akihabara Tokyo Japan. Making Blu-Ray, DVD outsoursing, MPEG, encode,mobile contents and flash memory copy service. Wholesale business and the media, like the foundation of our business can provide the solution for duplication. ・copy and protect for memory media, creating contents (USB memory,DVD-R,CD-R,Flash memory etc…) Equipment sales CD、DVD、Blu-Ray、Flash memory

  6. Wholesale Business Media Wholesale media transaction is the core business of our company. Most media related products are available from the various manufacturers. To extend market share, we have started application for CD-R,DVD-R development. We have a large selection of items available in our inventory in Japan. We can offer media related products to every needs. Please consult with us for the production of numerous private media items. We sell flash memory of Kingmax company (Taiwan), characterised USB items of AXXEN company (Korea). Flash memory-related products improved. Please leave to us all your needs about media. Our collaboration brand has a many sort of Flash memory products. We will give you special price for large amount of order. If you need Special media, discontinue media, please ask us, we can procure with our network.. ■　FD■Video tape ■　Discontinue CD-R、DVD-R■Copy protect CD-R、DVD-R、ＵＳＢ

  7. Flash media sales We are the sole agent of Kingmax (A Taiwanese company) , sales and marketing of KINGMAX brand products Flash Memory mainly in the Japanese market. We invested to Kingmax in December 2009, increasing Japanese market share and also planning to open a Kingmax shop in Akihabara district. KINGMAX, AXXEN USB memory for security purpose, and also software utilities are available. We are the Japanese agent of AXXEN (Korean company) and selling USB memory, MP3 Player as a sole agent in Japan. July 2008, We invested to AXXEN and developing product for Japanese market. Korean factory is an OEM for our brands USB flash memory.

  8. Portable applications business Market has been increasing every year because of higher capacity of memory card and lower prices. USB memory are easy to carry but if you lose, it`s may caused Information leakage. ‘USB memory and Security’ they are going to be very important subject. Our USB memory is available to various security software. ●Utility software can be downloaded free. ●Software support for copy program contents,program files. From last year virus are spread through the medium of USB memory, users want to sort this matter. We are selling Tarbo Vaccine that is virus protection software pre-installed on USB memory. We also have ‘PerfectEraser’ that is Software for deleted HD files permanently and ‘Raviro’, that is USB memory that can receive web-mail and POPmail form USB memory. We will develop various portable application for USB memory. To start the application from the USB memory-it’s already popular in abroad and this year, surely will popular in japan.

  9. Application Business Media PC users are increasing every year, because the prices are decreasing constantly. Most of the user are receiving/sending emails, downloading music and transferring/saving pictures from digital cameras regularly. Many users should have a problem because computer hard drive quickly fills up, especially backup emails arenot easy for most users. We believe that there are users who wants to save/receive e-mail confidential files and computer-generated to DVD-R not to Hard Disk.We sell back-up pre-installed software for CD-R, DVD-R, USB media products. ①file backup CD-R ②e-mail backup DVD-R ③Backup file encryption DVD-R Enter password, keyboard input is available to prevent hacking software Each media contains burning software. Anyone can save the file from hard disk to CD-R, DVD-R, and be encrypted.

  10. Monitor accessories Due to becoming very smaller, diversified application, a lot of information do not fit on one screen. In 2009, we have succeeded further strengthen this new business for the smaller monitor. We have increased the sales growth of the portable touch panel monitor to the SI traders. second monitor small USB Products Nanovision (Korean) General Agent Digital Photo Frame Digital Photo Frame Digital Photo Frame selling since 2006. We are selling products suitable design, features for Japanese user. The model can also transfer pictures from mobile phones to digital photo frame in 2010 may come to appear.

  11. Collaboration Business OEM For the larger order of CD-R, DVD-R media, Flash memory products, we will offer you OEM Special Price. If you are looking for more cheaper prices compare to your current buying prices and also find difficult to negotiate with foreign manufacturers, then you can do that by the collaboration with us. Please let us know your required quantity with prices, then our staff will negotiate with the overseas manufactures on behalf of you. There will not be any extra cost for the importation, because importation is our daily routine work. So, you can save a lot of money for the OEM business. For the OEM business, usually we charge lowest only 5% (cost +5%) We can cooperate each other increasing the amount of purchase and it makes cost price down and we will be more stronger competitiveness in the market. CD-R, DVD-R：Minimum order 1 lot (20 feet container) 10P Case Box: about 270,000 pc 50P Case Box: about 405,000 pc USB memory or Flash memory card We can offer special price for a large volume order.

  12. From DV, Digital Beta-cam, HD cam tape to MPEG-1, MPEG-2, MPEG-4, • Video Converter can be finish high quality at our editing studio. • Support for mobile telephone and video encode service. Duplication Outlets ＊Our duplicaton center is the biggest in Akihabara district. We support all duplication, CD-R, DVD-R, Flash memory, USB memory also Blu-Ray・DVD authoring ・MPEGencode. • We have copy protect duplication service for contents file, program file, CAD file etc… • We are specialist at copy protect, leave us copy protect services. Services convert Video files Blu-Ray Duplicator We started the cheapest price in the industry, for the next generations DVD service. . ■Blu-Ray duplication From JPY 2,000 ■Blu-Ray authoring From JPY 50,000 Copy Protect USB

  13. Flash memory-related services Flash memory CPRM writing service It is becoming normal to play videos from Deliver contents which using Flash memory card instead of CD, DVD / Download service / Portable multi media and digital frame In 2009 we will also focus on flash media-related services. • From DV, Digital Beta-cam, HD cam tape to MPEG-1, MPEG-2, MPEG-4, • Video Converter can be finish high quality at our editing studio. • SD Video encode for mobile telephone Video file Convert service Develop for KINGMX, AXXEN USB memory for application software. Virus check, send / receive mail, file encryption, Password, PC-Lock, album USB, file deleting application、ＣＡＤ file protect USBapplication Duplication service of Flash media has been increasing every year. images, videos, programs, and can accommodate a variety of formats. Support for writing of CPRM / copy protection. If you use our flash memory, can reduce cost a lot. We also selling memory duplicator. Flash Duplication service

  14. Copy Protect service Leaking personal information is increasing every year, it is a big social problem. We are started copy protect service for each media and deal copy protect support media in 2008. Our CD-RX Media is the best for Copy protection for information technology,educational content and program files CD-R Copy Protect DVD video, program files, the file content ofCopy protected.（Video,MP3,Flash etc…）We offer multiple solutions for every case. DVD-R Copy Protect We offer 2 type of protections. TSFD Copy Protect - Program install to USB pen drive. Sell/distribute to users. Secure-I –who concern to security. USB pen drive Copy Protect

  15. Duplicator Sales CD/DVD±R Duplicator Copy Protect Business We are also selling duplication machines which is same as duplication center. We can recommend to our customers to find best equipment from our experience. Otari VDP-116 CD/DVD±R Duplicator The best for large quantities copy 16　drive high-performance continuous operation CD/DVD±R Duplicator CD-R：110MB data: 16 speed 776 pieces / hour DVD-R： 1GB data: Approximately 100 pieces / hour for a copy of Otari　LP-3 CD/DVD Label brinter　 Suitable for large quantities label print. Label printer with revolutionary three in one inkjet printer.Up to 600 discs can be loaded. Corresponding to five hours of continuous operation. AllProCD/DVD±R Duplicator CD・DVD label Printer CD/DVD±R Duplicator for 2 to 9 drives with automatic loader depending on applications Rimage Duplicator RimageDuplicators for CD-R、DVD-R、Blu-Ray Compatible with CD-R copy protect、DVD-R copy protect

  16. Flash Memories/USB Pen Drive Duplicators Started duplication services by introducing flash memories duplicators from Germany in 2005. Increased users who need flash memories duplicators for large quantities of copies for Mobile phone, portable AV equipment with flash memories. Duplicators with high end memories Prepared various duplicators for various flash memories. Provide products support after sale by customers. Duplication software for copy protects Import and sales of flash memories & USB Pen Drives. Provide brands collaborating with the overseas vendors For flash memories and duplicators. Developed duplication software for USB protects. License to use software available. Protects for USB Pen Drive copies. Trend to sell and distribute USB Pen Drive Incorporating contents. Forecast to increase Protects for USB Pen Drive copies. Trend to sell and distribute USB Pen Drive Incorporating contents. Forecast to increase issues of copy protects for contents as well as CD & DVD, USB copy protects Software available. We are its solution provider in addition to sales of Devices.

  17. Application License Business Developing various applications for CD-R / DVD-R / USB memories. License solutions available for customers who need to incorporate our applications into users products.Our sales channels available for customers who already developed its software. Applications for licenses ■Turbo Vaccine: Virus guard software■Perfect Eraser： Software to delete all files completely ■Music Q： Music and video replay viewers ■Album Slide Show：　Software for still images ■File Distributors： Software to distribute files ■Secure-I： Contents file copies protect software ■TSFD USB,Secure-DVD-R ：Contents & programs file copies protect software ■Raviro USB： Software for email transmitted and received

  18. Web sales and Shops Web sales started from 2008 and increased in 2009 from the web sales business. Some original products are available with us, those are not available to the other competitors. There is a possibility for new customers from BtoB. Outlet shops located in the headquarter, provides various products, new items will be added with great services. ソリュー ション

  19. Classifications ・DDS Data Cartridge （DDS-4：20GB DDS-3：12GB DDS-2：4GB DDS-1：2～1.3GB）・8mm Data Cartridge（HS-8/160D：7GB HS-8/112D：2.5/5GB AIT：2.5GB～100GB） Medias for large/medium/small computers available. • SD Cards • Micro SD cards • USB memories • Smart media • Compact flash • Memory stick • Multimedia card • XD picture card Outlet Duplication ・CD-R（52 double speed ・CD-RW（1,000 times or more Protect Copy Medium Size Computers Outlet Digital Devices ・Blu-Ray,HD-DVD-R・DVD±R（one surface 4.7GB）・DVD±RW（one surface 4.7GB 1,000 times or more）・DVD-RAM（one surface 4.7GB/both surface 9.4GB 100,000 times or more） Small computers & Home Recorders Demands for micro SD card & USB card increased. The original brand flash memory available. Large Computers Outlet Duplication Copy Protect ・3.5”FD ・3.5”MO ・3.5” over-light MO ･DLT Data Cartridge for large memory DUD master applications ･Super DLT Data Cartridge for 110GB memory ・LTO Ultrium Data Cartridge for 1TB next generation back-up media

  20. Strategy 2010 Breakthrough US$200M by media/security/license/ business development/overseas market 1. Business Development 3. Overseas market development Started oversea marketing to develop new business for any type of business. Started portable application business to fuse various media & application ・Security USB ・Security DVD-R・Virus guard USB ・email transmitted and received USB ・File complete deletion USB ・File back-up CD-R,DVD-R,USB・Contents USB ・Contents ＳＤ, Contents MCSD ・Flash memory copy protect 2. Expansion of security business CD-R/DVD-R/USB memory protects for contents copy right protection to avoid personal information & classified documents

  21. Our company policy is to make satisfaction of the Customers and services. Our advantages Reliability and sales records for media devices Competitive prices with various media devices Provide Flash memory cards and its services Provide portable application products Quick delivery by the latest logistics technologies Provide the competitive products

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