Dec7 2006 Rightsscale

PRESS CONTACT:

Shigeyoshi Fujiwara
Corporate Communication,
Faith Inc.
ir@faith.co.jp
TEL: +81-3-5776-6255
FAX: +81-3-5776-6256

Faith Group Reinforces Digital Music Distribution through Buy-out of Rightsscale
- Acquisition of Leading Music Distribution Service Company oriented toward PC/Mobile Contents Providers such as iTunes -

Tokyo-December 7, 2006---Today, Brave, Inc. (hereinafter referred to as “Brave”), a subsidiary of Faith, Inc. (hereinafter referred to as “Faith”), took on Rightsscale, Inc., an affiliate of Faith (hereinafter referred to as “Rightsscale”; investment ratio: 27%) by acquiring all its issued shares.

Rightsscale takes part in the digital distribution business of music by providing solutions ranging from delivery of contents to payment and reports of copyright fees for PC-oriented music download services via Internet and mobile phone-oriented music distribution services. Up to the present, Rightsscale has concluded contracts with 270 music labels and distributes 15,000 pieces of music to PC and mobile phone-oriented contents providers such as iTunes Stores both in Japan and overseas.

Brave was established in April 2006 with the aim of conducting audio and video software production and digital contents distribution business with 60% investment from Faith, 30% from Taito Corporation and 10% from Square Enix Co. Ltd. and has set up business providing music and video contents with the goal of expanding its digital distribution channels.

By acquisition of Rightsscale as a 100% subsidiary, Brave will further expand its music digital distribution business and establish the music label business by making use both of the close and broad relationship developed with artists and producers with the main focus on Indies (independent music label) and of the 10 million or more Faith Group users. Furthermore, by planning and developing the music community both at home and abroad, Brave will move forward with the creation of a new music distribution structure to produce and provide a new way of enjoying music that meets the needs of the times.

Profile of Rightsscale　http://www.rightsscale.co.jp/
[Name of the company]	Rightsscale, Inc.
[Representatives]	Mamoru Fukumitsu, CEO and Company President
[Shareholder composition (Before share transfer)]
	Taisuke Corporation Limited (37％) Faith, Inc. （27％） Rightsscale directors, etc. (36%)
[Address]	Shibuya-ku, Tokyo
[Date of establishment]	February 3, 2005
[Business summary]	Digital music distribution
[Fiscal year end]	May
[Number of employees]	6 (including directors)
[Capital stock]	180 million yen
[Number of shares outstanding]	370

Profile of Brave　http://www.brave.bz/
[Name of the company]	Brave, Inc.
[Representatives]	Hiroshige Tonomura, CEO and Company President
[Shareholder composition]	Faith, Inc. (60%) Taito Corporation (30%) Square Enix Co. Ltd (10%)
[Address]	Minato-ku, Tokyo
[Date of establishment]	April 28, 2006
[Business summary]	Audio and video software production, digital distribution
[Fiscal year end]	March
[Number of employees]	9 (including directors)
[Capital stock]	80 million yen
[Number of shares outstanding]	1,600

About Faith, Inc.

Faith was the first company in the world to design and apply “ring tones” for mobile telephones and expanded its business activities not only within Japan, but also into 21 countries throughout the world including North America, Europe, the Asia-Pacific region and South America. Moreover, the company provides electronic money service used for settlement of accounts for on-line games, music distribution and e-commerce. In the United States, Faith also provides mobile telephone services (MVNO service) targeted towards a specific customer segment. In the future, Faith further aims to be a high added-value service company through the creation on a global scale of “a new scheme for the distribution of digital contents” in various environments such as mobile telephones and PCs.
For more information, visit http://www.faith.co.jp/