080129Takenet

PRESS CONTACT:
Shigeyoshi Fujiwara / Miho Ishikawa
Investors & Public Relations Department
Faith, Inc.
mail_to_ir@faith.co.jp
Tel: +81-(0)3-5776-6255
Fax: +81-(0)3-5776-6256

Faith to Sell TakeNET, Brazilian Subsidiary of Contents Distribution Service
－ Completes realignment of overseas contents distribution business －

Tokyo-January 29, 2008 --- Faith, Inc. (Faith; TSE 1st section, stock code 4295)announces that it has reached the agreement of the sale of all the shares of Invest Virtua S.A., which holds shares of Curupira S.A., commonly known as TakeNET, one of Faith’s subsidiaries operating contents distribution service in Brazil and other South American countries. This transaction is to complete the recent series of actions for realignment of overseas contents distribution business, which aims to perform intensification and optimum distribution of the group’s management resources.

Since 2002, Faith had been expanding its overseas contents distribution business, mainly ringtone and other music contents distribution for mobile phones. In May 2002, it established Moderati, Inc. in the United States, and in August of the same year, acquired Digiplug S.A.S. in Europe. Then in China, in December 2002, it established AnyMusic Limited. In addition, in March 2005, Faith expanded its business into South America by acquiring TakeNET in Brazil.
At the same time, overseas market of contents distribution service started to reveal its severe operation climate day by day due to a surge of new contents providers and the mobile carriers’ entry to contents distribution business for their subscribers. For further expansion of overseas contents distribution service, it is required that it should create, or obtain, and distribute original contents in high demand to differentiate its service from its competitors’.
Taking the business environment into consideration, Faith judged that further investment and time would be required until the overseas contents distribution business grows sufficiently to contribute to the growth of Faith Group. Therefore Faith determined to sell all the overseas contents distribution business to perform optimum distribution of the group’s limited management resources and active investment on more potential business fields.
This transaction of the sale of contents distribution service subsidiary in South America is to complete the sales of all overseas contents distribution business, following the sale of contents distribution service subsidiary in the United States in February 2007, the sale of contents distribution solution subsidiary in Europe in March of the same year, and the sale of contents distribution service subsidiary in China in November of the same year.

Faith Group’s overseas business policy in future is to concentrate management resources on licensing distribution platform technology, and through these efforts, the group will accelerate the expansion of overseas business.

1. Profile of TakeNET

1) Name of Company	Invest Virtua S.A.
2) Representative	Jose Carlos Corazza La Motta
3) Address	Belo Horizonte, Brazil
4) Date of Establishment	April, 1999
5) Business Summary	Mobile contents distribution service such as ringtones
6) Fiscal Year End	December
7) Number of Employees	93
8) Capital Stock	4,337 thousand Brazilian Reals
9) Aggregate number of outstanding shares	1,108,681
10) Shareholder	Faith, Inc. 99.39%

11) Financial Records

(Unit: Thousands of Brazilian Reals)

	Year Ending Dec. 2006	Year Ending Dec. 2007(Forecast)
Sales	12,259	13,874
Operating Profit	(6,095)	(814)
Pretax Net Profit	(7,062)	(918)
Net Profit	(7,061)	(918)

12）Asset

(Unit: Thousands of Brazilian Reals)

	Year Ending Dec. 2006	Year Ending Dec. 2007(Forecast)
Asset (Gross)	7,732	8,409
Asset (Net)	(4,878)	(5,875)

2. Transferees

Antonio Eustaquio De Oliveira
Daniel Rodrigues Costa
Marcelo Costa De Oliveira
Roberto Costa De Oliveira
Rodrigo De Oliveira Esteves
Sergio Cruz Passos
Andre Cesari De Oliveira Minelli

3. Details of the shares transfer

1) Number of shares held before the transfer	1,101,934 shares　(99.39% of outstanding shares)
2) Number of shares transferred	1,101,934 shares (Transfer price: 994 thousand US dollars)
3) Number of shares held after the transfer	Nil (Nil of outstanding shares)

4. Schedule

29 January, 2008	Concluding the contract for transferring all the TakeNET shares Faith owns
8 February, 2008	Closing the transaction

5. Financial Impact

It is expected that 100 million Yen of extraordinary gain on the sale is to be posted on a consolidated basis, and 100 million Yen as well on a non-consolidated basis. Since TakeNET’s fiscal year ends in December, no revision is made on the financial forecast for the year ending March 2008. Faith Group is now working on the consolidated financial forecast for Fiscal Year 2008 (Year Ending March 2009) which will be announced as soon as available including the impact of this transfer.

About Faith, Inc.　(stock code, 4295; 1st section of TSE)
Faith is a pioneer of ringtone business for mobile phones. Originally, the concept of “ringtone” started from this company. It commercialized the idea, and expanded the business not only within Japan, but also into the 21 countries throughout the world, including North America, Europe, the Asia-Pacific region, and South America. Moreover, the company provides wide range of services such as on-line game and music distribution, and issuance of the electronic money to settle e-commerce shopping. In future, Faith aims to provide the higher added-value service through the creation of “a new scheme for the distribution of the digital content” in the global scale in various environments such as mobile phones and PCs.
For more information, visit http://www.faith-inc.com/