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January 29, 2007

Promise Co., Ltd.

Promise Forms Business Alliance with livedoor to Start Internet Shopping Mall Business

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Plans to establish a business model to meet financing needs
for processing Internet shopping transactions

Promise Co., Ltd. will establish a company for the purpose of starting an Internet shopping mall business. Promise has entered into a business alliance with livedoor, Co., Ltd. to receive assistance involving the launch and operation of the new company's Internet shopping mall. Through this alliance, the new company will have full access to livedoor's systems and know-how involving its Internet shopping mall (livedoor Department Store).
  In addition, there is a need at Internet shopping malls for financing for the settlement of purchases by customers and other transactions. Most of these needs are for short-term financing in small amounts. Currently, shoppers pay for Internet mall purchases primarily by using credit cards, paying cash on delivery and paying at convenience stores. This new company will incorporate a system for meeting this need for financing to process payments, enabling the Promise Group to offer a financial service that is extremely convenient for its customers.
  Currently, Promise is using alliances with companies in other industries to develop a number of business models. The objective is to target directly financing needs associated with a broad spectrum of consumers' activities, thus serving an even more diverse range of customer segments. The launch of this Internet shopping mall business is one component of this business model creation process.

1. Outline of New Company
1) Trade name:Undecided
2) Principal business:Internet shopping mall business
3) Establishment:Middle of February 2007
4) Location of head office:26F, Shiodome Sumitomo Bldg., 1-9-2 Higashi-Shimbashi, Minato-ku, Tokyo
5) Representative:Undecided
6) Paid-in capital:480 million yen
7) Number of employees:64 (Planned)
8) Principal shareholder:PAL Life Co., Ltd.: 100%
(Wholly-owned consolidated subsidiary of Promise)

2. Schedule
January 29, 2007Signing of business alliance contract with livedoor
April 1, 2007Planned start of operations

3. Business Alliance with livedoor
  1) Objective of business alliance
Leasing of system used by livedoor for its Internet shopping mall and access to livedoor's expertise concerning shopping mall merchants (tenants), merchandise (content), marketing, operations and administration for the purpose of quickly starting an Internet shopping mall business.

  2) Components of business alliance
·Collaboration with portal site operated by livedoor
·Provision by livedoor of Internet shopping mall system
(now called livedoor Department Store)
·Provision by livedoor of consulting services
·Other forms of cooperation

  3) Outline of livedoor
1) Trade name:livedoor Co., Ltd.
2) Principal business:Internet-related business
3) Establishment:August 1997 (Founded: April 1996)
4) Location of head office:38F, Roppongi Hills Mori Tower, 6-10-1 Roppongi, Minato-ku, Tokyo
5) Representative:President: Kozo Hiramatsu
6) Paid-in capital:86,291 million yen (As of September 2006)
7) Number of employees:2,888 (As of October 2006)

This news release has been translated from the original Japanese document released on January 29, 2007, for reference only.
  In the event of any discrepancy between this translated document and the original Japanese document, the original document shall prevail.

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