August 5, 2009

2009 Interim Financial Results

1

Table of ContentsⅠ. 2009 Q1-Q2 Highlights 2

II. 2009 Q1-Q2 Consolidated Financial Results2009 Q1-Q2 (Cumulative) Consolidated Financial Results 4

Sales by Service 5Costs and Expenses Breakdown 6Consolidated Cash Flows 7Consolidated Balance Sheet Excerpt 8

Ⅲ. 2009 Q2 Consolidated Financial Results2009 Q2 Consolidated Financial Results 10Sales by Service 11Quarterly Consolidated Cash Flows 12Quarterly Sales Trends by Service 13Sales, Gross Profit, and GP Margin 14Costs and Expenses Breakdown 15Breakdowns of Cost of Sales and Gross Profit 16Quarterly Sales Breakdown – COS, SGAs, and OP 17Quarterly Sales Breakdown 18

Ⅳ. Business ReviewGrowth Trends in EC Sites (Billed Basis) & Media Partners 20Growth Trends in EC Sites (Billed Basis) & Media Partners 21Daily Performance in Transaction Numbers 22Indicators Related to Transactions 23CPA Index and Transactions 24 Gross merchandise volume 25Category Breakdown in Sales 26Overview of ValueCommerce Web Service 27Service and Function Updates 28Real Affiliate Service 29

Ⅴ. Full-Year Earnings Outlook& Comparison with Actual Results 31

VI. Business Strategiesand Actions for Second Half 33,34

Ⅶ. AppendixQuarterly Earnings Results and Cash Flows (consolidated) 36Business Data 37Corporate Information 38

2

2009 Interim Highlights1.Despite a sales slide resulting from

liquidation of subsidiary Sozon, profit rose on a consolidated basis.

2. Sales by service: Growth in ASP Service

6. Others

3. Expansion of the affiliate ad network

4. Service update and new service launch

5. Alliance with Yahoo Japan Corporation

Sales: JPY 3,195 million (decreasing 4.8% Y/Y)

Gross Profit: JPY 1,207 million (decreasing 5.5% Y/Y) Operating Profit: JPY 105 million (increasing 49.0% Y/Y) GP Margin: 37.8% (37.3% in 2008 Interim period) OP Margin: 3.3% (2.1% in 2008 Interim period)

ASP Service: JPY 1,384 million (increasing 17.5% Y/Y)Consulting Service: JPY 1,641 million (increasing 1.8% Y/Y)

Clarke Robertson appointed Executive Vice President (EVP) Yoshia Makino appointed CTO Consolidated subsidiary Sozon dissolved at the end of May’09

Media partner sites: 720K sites Affiliate transactions: 4.6 million

- considerably increasing 82.5% Y/Y in Q2 Gross merchandise volume: JPY 32.7 billion in Q2 (increasing

41.2% Y/Y)

Affiliate platform incorporates e-commerce search information Incorporation of functions using mobile position data (map and

GPS) Gadgets linked with mobile image search technology

Brisk transactions on Yahoo! Auction via affiliate ads Exponential sales growth of Storematch Service

▽▽

▽▽

▽▽

3

2009 Interim Consolidated Financial Results

4

Q1-Q2 ‘09 As % of Sales Q1-Q2 ‘08 As % of Sales Y/Y Growth

Sales 3,195 - 3,354 - -4.8%

Cost of Sales 1,987 62.2% 2,103 62.7% -5.5%

Gross Profit 1,207 37.8% 1,251 37.3% -3.5%

SG&A Expenses 1,101 34.5% 1,180 35.2% -6.7%

Operating Profit 105 3.3% 70 2.1% 49.0%

Recurring Profit 81 2.6% 37 1.1% 119.3%

Extraordinary Gains/Losses 17 0.5% - - -

Pretax Profit 99 3.1% 37 1.1% 167.4%

Tax Provision 5 0.2% 118 - -

Net Profit 93 2.9% (80) (2.4%) -

2009 Interim Consolidated Financial Results

(Million JPY)

Despite a sales slide due to the dissolution of the subsidiary Sozon, cost cutting helped achieve a profit increase.

5

Q1-Q2 ‘09 As % of Sales

Q1-Q2 ‘08 As % of Sales

Y/Y Growth

Consulting Service 1,641 51.4% 1,613 48.1% 1.8%

ASP Service 1,384 43.3% 1,178 35.1% 17.5%

Sozon 169 5.3% 563 16.8% -70.1%

Sales in total 3,195 - 3,354 - -4.8%

Sales by Service

(Million JPY)

With more listing ads and exponential sales growth of Storematch Service, ASP Service sales rose.

* Storematch Service: Distribution of paid listing ads to Yahoo! Shopping and merchants and to sellers on Yahoo! Auction

6

Q1-Q2 ‘09 As % of Sales Q1-Q2 ‘08 As % of Sales Y/Y Growth

Cost of Sales (COS) 1,987 62.2% 2,103 62.7% -5.5%

Consulting Service 1,216 38.1% 1,165 34.8% 4.3%

Media Buying Cost 265 8.3% 245 7.3% 8.3%

Sozon 150 4.7% 500 14.9% -69.8%

Others 355 11.1% 191 5.7% 85.0%

SG&A Expenses 1,101 34.5% 1,180 35.2% -6.7%

Compensation 782 24.5% 782 23.3% -0.1%

Headcount 247 - 257 - (10)

Other SGAs 319 10.0% 397 11.9% -19.7%

Costs and Expenses 3,089 96.7% 3,283 97.9% -5.9%

Costs and Expenses Breakdown (consolidated)

(Million JPY)

Expenses declined largely attributable to the dissolution of the subsidiary Sozon. The cost of sales for StorematchService proportionally rose with its sales growth.

For Cost of Sales for Consulting Services (undertaken under contract), partner payments are counted as cost. Media Buying Cost refers to the cost of listing ads on a nonconsolidated basis. Others in Cost of Sales include the cost of sales for the Storematch Service.

7

Q1-Q2 ’09 Q1-Q2 ‘08 Change Factors

Operating Cash Flows (OCF) 131 74 +57 Pretax profit increasing JPY 62 million

Investing Cash Flows (ICF) (63) (242) +178(Q1-Q2 of 2008)

An outflow of JPY 199 million for the purchase of an investment trust

Financing Cash Flows (FCF) 0 4 (4)

Free Cash Flow 68 (168) 236

Incremental Cash Flows 68 (164) +232

Opening cash balance 2,834 2,820 +13

Closing cash balance 2,902 2,656 +246

(Million JPY)

Consolidated Interim Cash Flows

8

Q2’09 End Q2’08 End Change Q1’09 End Change Factors

Current Assets 3,886 3,649 +236 3,918 (32)Increase in cash

Cash 2,902 2,656 +246 2,885 +16

NoncurrentAssets 946 1,208 (261) 1,018 (71) Decrease in investment

securities

Total Assets 4,833 4,858 (25) 4,936 (103)

Current Liabilities 916 997 (80) 1,035 (119)

Decrease in accounts payable and in the accrued amount payable

NoncurrentLiabilities 176 204 (27) 186 (9) Decrease in guarantee

deposits received

Net Worth 3,739 3,657 82 3,714 24

Liabilities & Equity 4,833 4,858 (25) 4,936 (103)

(Million JPY)Consolidated Balance Sheet Excerpt

9

Q2’09 ConsolidatedFinancial Results

10

Q2’09 As % of Sales

Q2’08 As % of Sales

Y/Y Growth

Q1’09 As % of Sales

Q/Q Growth

Sales 1,548 - 1,648 - -6.1% 1,646 - -6.0%

Cost of Sales 942 60.9% 1,038 63.0% -9.3% 1,045 63.5% -9.8%

Gross Profit 605 39.1% 609 37.0% -0.7% 601 36.5% 0.7%

SG&A Expenses 558 36.1% 601 36.5% -7.0% 542 32.9% 3.0%

Operating Profit 46 3.0% 8 0.5% 452.6% 59 3.6% -20.8%

Recurring Profit 31 2.1% (3) (0.2%) - 49 3.0% -36.1%

Extraordinary Gains/Losses 1 0.0% 0 (0.1%) - 16 1.1% -

Pretax Profit 33 2.1% (4) (0.3%) - 66 4.1% -50.7%

Tax Provision 7 0.4% 117 7.1% -93.7% (1) (0.0%) -

Net Profit 25 1.7% (121) (7.4%) - 68 4.1% -62.5%

Q2’09 Consolidated Financial Results

(Million JPY)

Y/Y: Lower cost of sales and a reversal of DTA as an extraordinary factor in Q2’08.

Q/Q: Lower cost of sales

11

Q2’09 As % of Sales

Q2’08 As % of Sales

Y/Y Growth

Q1’09 As % of Sales

Q/Q Growth

Consulting Service 819 52.9% 789 47.9% 3.8% 822 49.9% -0.4%

ASP Service 710 45.9% 600 36.4% 18.3% 674 41.0% 5.2%

Sozon 19 1.2% 259 15.7% -92.7% 150 9.1% -87.5%

Sales in total 1,548 - 1,648 - -6.1% 1,646 - -6.0%

Sales by Service (consolidated)

(Million JPY)

ASP Service achieved sales growth attributable to increases in listing ads sales and sales of Storematch Service.

12

29

(79)(49) (48)

(415)

(17)(8)

97

3495

81

249

(92)

83

(42)

114135

(212)

(30)

125

(38)(71) (46)

(33)

170

3216

(129)

51

24

154

66

(457)

97

(38)

(125)

Q3'06 Q4 Q1'07 Q2 Q3 Q4 Q1'08 Q2 Q3 Q4 Q1'09 Q2

Operating Cash Flows (OCF) Investing Cash Flows (ICF) Free Cash Flow (FCF)

(Million JPY)Quarterly Consolidated Cash Flows Transition

Acquisition of shares of equity method affiliate Purchase of investment trust

Redemption of investment trust

13

661 688587 647

745 679824 789 791

888 822 819

614 618

567578

620598

578 600 602

657675 710

68 66

116

199

276

258

304259 271

220149 19

Q3'06 Q4 Q1'07 Q2 Q3 Q4 Q1'08 Q2 Q3 Q4 Q1'09 Q2

Consulting ASP SOZON

Quarterly Sales Trends by Service (consolidated)

(Million JPY)

Quarterly Sales Ratios

45.3% 48.5% 51.4%

40.2% 36.0%

43.3%

14.5% 15.5%5.3%

2007A 2008A 2009SA

Consulting ASP SOZON

1,646 1,5481,343 1,372 1,270 1,425 1,640 1,535 1,706 1,648 1,665 1,765

14

Sales, Gross Profit, and GP Margin (consolidated)

2,1762,075

2,246

2,502

2,322

2,4972,411 2,440

2,584 2,5622,429

605

2,216

1,6651,6481,7061,535

1,343 1,3721,270 1,425

1,6401,765

1,6461,548

634 647 611 641 609 607616679739

627 601

Gross Sales 2,216 2,176 2,075 2,246 2,502 2,322 2,497 2,411 2,440 2,584 2,562 2,429

Net Sales 1,343 1,372 1,270 1,425 1,640 1,535 1,706 1,648 1,665 1,765 1,646 1,548

Gross Profit 739 679 616 634 647 611 641 609 607 627 601 605

GP Margin (Gross) 33.3% 31.2% 29.6% 28.2% 25.9% 26.3% 25.7% 25.3% 24.9% 24.3% 23.5% 24.9%

GP Margin (Net) 55.0% 49.4% 48.5% 44.5% 39.5% 39.8% 37.6% 37.0% 36.5% 35.5% 36.5% 39.1%

Q3'06 Q4 Q1'07 Q2 Q3 Q4 Q1'08 Q2 Q3 Q4 Q1'09 Q2

(Million JPY)

15

Q2’09 As % of Sales

Q2’08 As % of Sales

Y/Y Growth

Q1’09 As % of Sales

Q/Q Growth

Cost of Sales (COS)

942 60.9% 1,038 63.0% -9.3% 1,045 63.5% -9.8%

Consulting Service 615 39.8% 571 34.6% 7.8% 600 36.4% 2.6%

Media Buying Cost 143 9.3% 136 8.3% 5.6% 122 7.4% 17.7%

Sozon (5) (0.4%) 228 13.8% - 157 9.5% -

Others 188 12.2% 103 6.3% 82.5% 166 10.1% 13.7%

SG&A Expenses 558 36.1% 601 36.5% -7.0% 542 32.9% 3.0%

Compensation 406 26.2% 407 24.8% -0.4% 376 22.8% 8.0%

Headcount 247 - 257 - (10) 259 - (12)

Other SGAs 152 9.9% 193 11.7% -21.1% 166 10.1% -8.3%

Costs and Expenses 1,501 97.0% 1,640 99.5% -8.5% 1,587 96.4% -5.4%

Quarterly Costs and Expenses Breakdown (consolidated)

(Million JPY)

Cost of sales as a percentage of sales for the Consulting Service remained on the rise. The increase in the cost of sales for others resulted from the sales growth of the Storematch Service.

16

30.7% 35.0% 38.1%

6.4%7.5%

8.3%13.0%

14.2% 4.7%7.1%

6.7%11.1%

42.7%36.6% 37.8%

2007A 2008A 2009SA

Consulting Service Media Buying CostSOZON OtherGP Margin

400 448 387 428 515 470595 571 562 647 600 615

9472 80

113 113

136 133130

122 143

7255

96180

262227

272 228 250212

157

7095 98

10388 103 111

150

166

188

607627

601605

109

62

(5)

103

114

739679

616

634

647641 609

611

Q3'06 Q4 Q1'07 Q2 Q3 Q4 Q1'08 Q2 Q3 Q4 Q!'09 Q2

Consulting Service Media Buying Cost SOZON Others Gross Profit

Breakdowns of Cost of Sales and Gross Profit (consolidated)

1,646 1,5481,343 1,372 1,270 1,425 1,640

Quarterly Sales Ratios

1,535

(Million JPY)

1,706 1,648 1,665 1,765

17

57.3%63.4% 62.2%

24.4%23.1% 24.5%

14.9%11.3% 10.0%

3.4% 2.2% 3.3%

2007A 2008A 2009SA

COS Compensation Other SGAs OP Margin

604 692 653790

993 9241,064 1,038 1,058 1,139

1,045942

407380

376406

228

271

244

215

210207

204 193 191180

166152

131 9

57

62 8 8 5946

347

407375366

356

364435

379

66

72

62

Q3'06 Q4 Q1'07 Q2 Q3 Q4 Q1'08 Q2 Q3 Q4 Q1'09 Q2

COS Compensation Other SGAs Operating Profit

Quarterly Sales Breakdown – COS, SGAs, and OP (consolidated)

1,646 1,5481,343 1,372 1,270 1,425 1,640

Quarterly Sales Ratios

1,535

(Million JPY)

1,706 1,648 1,665 1,765

18

45.0% 50.4% 51.4% 55.5% 60.5% 60.2% 62.4% 63.0% 63.5% 64.5% 63.5% 60.9%

22.8% 26.2%

17.0%

19.8% 19.2% 15.1% 12.8% 13.5% 12.0%11.7%9.8% 0.7% 3.7% 3.7%

24.5%25.0%

28.7%31.7%28.2%

22.3%24.7%

22.0%22.6%21.5%

10.2% 10.1% 9.9%11.5%

-1.9%

0.5%0.5%4.4% 4.4% 3.8% 3.6% 3.0%

265257

216213209209216219

234

266 259 247

OP Margin 9.8% -1.9% 0.7% 4.4% 4.4% 3.7% 3.7% 0.5% 0.5% 3.8% 3.6% 3.0%

Other SGAs 17.0% 19.8% 19.2% 15.1% 12.8% 13.5% 12.0% 11.7% 11.5% 10.2% 10.1% 9.9%

Compensation 28.2% 31.7% 28.7% 25.0% 22.3% 22.6% 22.0% 24.7% 24.5% 21.5% 22.8% 26.2%

COS 45.0% 50.4% 51.4% 55.5% 60.5% 60.2% 62.4% 63.0% 63.5% 64.5% 63.5% 60.9%

Headcount 219 234 216 209 209 213 216 257 265 266 259 247

Q3'06 Q4 Q1'07 Q2 Q3 Q4 Q1'08 Q2 Q3 Q4 Q1'09 Q2

Quarterly Sales Breakdown (consolidated)

19

Business Review

20

2,7312,8652,8762,7602,6872,617

1,5151,870

2,1182,3392,400

2,066

Q3 Q4 Q1'07 Q2 Q3 Q4 Q1'08 Q2 Q3 Q4 Q1'09 Q2

Growth Trends in EC Sites (Billed Basis) & Media Partners

728,000703,000672,000640,000

404,000461,000 498,000 534,000

359,000317,000

577,000607,000

Q3 Q4 Q1'07 Q2 Q3 Q4 Q1'08 Q2 Q3 Q4 Q1'09 Q2

EC sites (clients, on billed basis)

Media partners (publishers)

21

Partner Payments Indices

1,324 1,3071,245

1,308

1,432

1,305

1,4101,374 1,381

1,5031,559 1,546

Q3'06 Q4 Q1'07 Q2 Q3 Q4 Q1'08 Q2 Q3 Q4 Q1'09 Q2

(Million JPY)

The sum of partner payments for ASP Service and Consulting Service confirmed for each quarter

Partner Payments Fixed-Value / Fixed-Rate Breakdown

74.9%67.8%

60.9%

25.1%32.2%

39.1%

2007A 2008A 2009SA

Fixed-value payments Fixed-rate payments

Partner payments stood at quarterly JPY 1.5 billion, reflecting growth in e-commerce sales.

22

0

10

20

30

40

50千

Daily Performance in Transaction NumbersThe number of transactions remained strong from Q1, largely in accelerating e-commerce sales to consistently attain daily 40K transactions.

(Thousand)

23

Transaction Indices

41.5% 46.2%

65.4%

23.8%22.4%

15.9%9.7%

10.2%

4.8%5.9%

5.1%

3.0%5.9%

4.9%3.9%4.3% 4.1%2.5%3.4% 2.9%

5.5% 4.2% 2.6%1.9%

2007A 2008A 2009SAOnline Services & Shopping Travel / LifestyleEntertainment BusinessComputers FinanceCommunications Others

46.4%40.2%

25.7%

53.6% 59.8%74.3%

2007A 2008A 2009SA

Fixed-value payments Fixed-rate payments

Category Breakdown Fixed-Value / Fixed-Rate Breakdown

In Q1-Q2’09, transactions in e-commerce increased. With respect to payment type, fixed-rate payments rose constantly.

24

0.76

1.00

1.46

0

500

1,000

1,500

Jan-05May-05

Sep-05Jan-06

May-06Sep-06

Jan-07May-07

Sep-07Jan-08

May-08Sep-08

Jan-09May-09

千

トランザクション数 CPA単価（指数値）

CPA Index and Transactions

The diagram reflects monthly data from 2005 onwards. Transactions figures represent actual values while CPA figures are expressed in index values as an average across all categories with January 2005 as the reference month.

From Q1’09, transactions grew while the CPA index continue to plunge. This clarifies a trade-off relationship between the rise in transactions and the slide in the CPA index.

Thousand

No. of transactions CPA Index

25

16,103 15,86118,753

20,58823,916 23,030

25,59425,28323,130

30,989

22,572

32,664

2.712.512.512.47

2.712.43

2.242.132.11

2.80

3.90

4.58

Q3'06 Q4 Q1'07 Q2 Q3 Q4 Q1'08 Q2 Q3 Q4 Q1'09 Q2

流通総額（百万円） 成果トランザクション数（百万件）

Gross Merchandise Volume (GMV)

* Gross merchandise volume : The purchase price of the sale of goods (shopping and various products) and the amount of money for travel handling, both on the Web and through mobile devices. Lead generation advertisements (catalog inquiry, membership application, request for estimates, etc.) are not included.

From Q1’09, growth in transactions and amount through affiliate marketing on Yahoo! Auction made a significant contribution to exponential GMV growth.

GMV (JPY million) No. of transactions (million)

26

Category Breakdown in SalesFinance sector maintained a ratio of around 40%. The percentage figure hiked in travel in part due to seasonal factors. Health/beauty category increased as well.

Q3’06 Q4 Q1’07 Q2 Q3 Q4 Q1’08 Q2 Q3 Q4 Q1’09 Q2

Finance 36.7% 36.5% 34.2% 35.0% 33.2% 38.0% 39.7% 39.2% 38.2% 41.1% 38.3% 38.8%

Online Services & Shopping

12.0% 13.1% 15.9% 18.8% 20.1% 14.5% 13.9% 13.2% 11.8% 9.9% 14.5% 13.6%

Travel / Lifestyle 10.3% 13.0% 15.1% 15.0% 16.2% 15.3% 13.4% 15.7% 18.4% 14.9% 14.8% 17.0%

Business / Jobs 8.6% 9.0% 9.7% 9.7% 7.8% 9.6% 9.3% 8.6% 8.7% 9.3% 8.3% 7.8%

Computers 4.7% 5.5% 6.2% 5.0% 7.4% 6.7% 9.0% 8.6% 8.1% 9.2% 8.9% 8.0%

Communications 6.7% 3.9% 4.4% 4.9% 4.8% 5.1% 4.5% 5.1% 4.7% 4.5% 4.2% 3.6%

Entertainment 4.4% 5.0% 4.1% 3.6% 3.2% 3.5% 3.8% 4.1% 3.6% 3.8% 3.2% 3.1%

Education 9.4% 7.1% 4.2% 3.1% 2.9% 2.4% 2.1% 1.2% 1.4% 1.4% 1.4% 1.4%

Health / Beauty 3.7% 3.1% 2.7% 2.7% 2.4% 2.3% 2.3% 2.6% 3.5% 3.6% 4.1% 4.9%

Automobiles 2.4% 2.1% 3.2% 2.0% 1.7% 1.7% 1.9% 1.4% 1.4% 1.1% 1.2% 0.8%

Others 1.1% 1.7% 0.3% 0.2% 0.3% 0.9% 0.1% 0.3% 0.2% 1.2% 1.1% 1.0%

27

API stands for Application Program Interface. The product search API allows searching for product information on EC sites. Media partners use this API to perform a product search to easily retrieve product titles, descriptions, and prices as well as payment and banner URLs so that they can place affiliate banners on their own media.

New Features API

Incorporating new featuresinto existing sites

(Content Enrichment)

Distributingproduct information

Media Partner Sites

Internet Users

Attracting internet usersEC Sites

- Yahoo! Shopping- Websites of mass retailers of electric appliances

- PC manufacturers’ direct sales websites

- Travel agencies- Restaurant information websites

- Others

DB

DB

DB

DB

DB

DB

DBOfferingproduct

information

12

3

ValueCommerceProductDatabase

Overview of ValueCommerce Web Service

メディアパートナーサイト数

11,000

28,157

2,2501206,450

33,60135,284

22,193

38,302

15,500

Q1'07 Q2 Q3 Q4Q1'08 Q2 Q3 Q4

Q1'09 Q2

ECサイト数

115

191

168155

138

125101

70

42

11

Q1'07 Q2 Q3 Q4

Q1'08 Q2 Q3 Q4

Q1'09 Q2

Schematic Diagram of ValueCommerce Web Service

商品件数 （百万件）

30.433.2

34.7

22.2

25.4

7.0 7.8

12.4

15.6

21.9

Q1'07 Q2 Q3 Q4 Q1'08 Q2 Q3 Q4 Q1'09 Q2

The product database now covers 34 million items.

Media Partner Sites Items (million) EC Sites

28

Service and Function Updates: Use of Mobile Position Data, Gadgets, etc.

Affiliate Marketing with Image Search:Guiding users to goods sales sites on the basis of images captured withtheir camera phones

○○○○○○

キリンキリン

一番搾り一番搾り

350ml350ml

(A conceptual (A conceptual presentation)presentation)

Use of mobile position data:Using latitude and longitude data onGPS-ready mobile phones

Gadgets: An approach of enabling easy selection of desired items from product data and customization of the color, size, and other attributes of ads to suit the design of the website or blog

Three Types of Gadgets

Results of Partner Site Search

Current location identified with GPS and

transmitted

Database

(1) Searchingby position data

(2) Returning results

Home of partner site

Leading the user to nearby hotels after single button operation

Advertiser Advertiser Advertiser

* If the user authorizes transmission of position data

Helping you find items you want

ALL ECValueCommerce’s EC Portal

(beta)

Item SearchChoose Category

↓ Enter item that interests youMobile Affiliate brings you information

on items you want

KIRIN ICHIBAN commercial

‘Realizing quality’ edition

Shoot!

KIRINICHIBAN

350 ml

Ranking GadgetsKeeping visitors updated with hot items

This week’s hot items

Showcase GadgetsDisplaying intended items only

My Pick Items

Search GadgetsLetting visitors perform product search independently

Product Search

29

Affiliate Marketing Gives Incentive to Use E-Money with Loyalty Points A pay-per-action affiliate service combined with e-money with loyalty points, operated by D.A.Consortium, bitWallet, and ValueCommerce This service targets members of Edy Paradise on bitWallet’s official website, who number approximately 150,000. In partnership with more than 800 sites including those of department stores and businesses in beauty, food and other categories, Edy Paradise offers loyalty points that can be converted into Edy e-money value in response to actions on the site such as goods purchases, catalog requests, and member registration. Advertisers run campaigns for Edy Paradise members to attract them to their real stores. Members earn Edy points for their actual visits to such stores and for their payments by FeliCa and suchlike. For instance, it has been introduced to principal Eyecity contact lens stores in and around Tokyo.

Edy Suica nanaco PASMOOperator bitWallet, Inc. East Japan Railway Company Seven and I Holdings Co., Ltd.

(IY Card Service Co., Ltd.)PASMO Co., Ltd.

No. of Cards Issued 48,400,000 (May 2009) 28,780,000 (May 2009) 7,770,000 (Apr. 2009) 12,530,000 (May 2009)

No. of Stores Accepting 132,000 (May 2009) 59,220 (March 2009) 23,473 (Apr. 2009) n.a.

Daily Average Transactions n.a. 1,514,000 (Jun. 2009) n.a. 1,514,000 (May 2009)

Market Penetration Status of Major E-Money Services

All the figures are as announced by their respective companies and the date in parentheses represents the date of announcement. Edy is the brand name of the prepaid e-money service controlled by bitWallet, Inc. Suica, nanaco, PASMO and FeliCa are registered trademarks of East Japan Railway Company, IY Card Service Co., Ltd., PASMO Co., Ltd. and Sony Corporation respectively. At the moment, there are mutual compatibilities between different services.

Conventional Based on real actions

Users Internet users Edy Paradise members

Main advertisers

EC sites Real stores, car dealers, real estate agencies

Media Point sites Edy Paradise

Action Catalog requests and purchases on the Web

Actual visits to real stores and purchases at real stores

Reward Points and cash Points

* Comparison between conventional affiliate services and the affiliate service based on real actions

30

Full-Year Earnings Outlook& Comparison with Actual Results

31

Comparison with 2009 Consolidated Earnings Outlook(Million JPY)

Financial Results Earnings OutlookQ1 Q2 Q1-Q2

(A)Q1-Q2’09

(Revised on Jul. 21)Full-Year

Outlook (B)Q1-Q2 Progress

(A)/(B)Sales 1,646 1,548 3,195 3,195 5,890 54.2%

Operating Profit

59 46 105 94 150 70.5%

Recurring Profit

49 31 81 72 130 63.0%

Net Profit 68 25 93 80 55 170.9%

Results proved more positive than the revised outlook announced on July 21, after modification to reduce the provision for the allowance for doubtful accounts at subsidiary Sozon and the posting of a gain on reversal of the same allowance. The full-year outlook announced on February 10 is kept on hold.

32

Business Strategiesand Actions for the rest of 2009

33

Business Strategy: Focus on CPA business to solid earnings base

ASP Service Increase EC sites and improve user retention to raise the sales level of ASP Service, the relative share of which was on the decline.

Consulting Service Operate this service as a mainstay service and continue to cultivate blue chip EC sites.

Collaboration with Yahoo Continue to expand the Yahoo! property CPA model and to boost Storematch sales.

Mobile Expand sales of the new platform Movalue.

Services, functions, options, etc.

Expand sales of Performance Recommender, upgrade the control screen, expand gadget functions, revamp Shoppers Club , etc.

First Half Review Actions for Second HalfASP Service

(Excl. Storematch)The number of EC sites was declining. Increase efforts to win new ASP clients. Focus energy on

sales expansion via agents.

Consulting Service The service for job placement clients was affected by the economic slowdown, but the decline was offset by other sectors.

Obtain new transactions and blue-chip EC sites.

Collaboration with Yahoo The number of transactions and gross merchandise volume were strong on Yahoo! Auction. Storematch sales were on the rise.

Expand the space for new ad placements on Storematch. Continue the focus on Yahoo! Shopping and Yahoo! Auction.

Mobile Movalue obtained at least 50 new EC sites per quarter but there were problems with retention and continuation and with the contribution to financial results.

Capture mobile needs for services using latitude and longitude data based on GPS functions , services combined with map information, and image affiliate services

Services, functions, options, etc. The goods information function (to monitor what is sold in what quantities) was added to the control screen. Three types of gadgets were added.

Expand sales of Recommender. Revamp Shoppers Club. Upgrade the control screen again.

1H’09 Review and Actions for the rest of 2009

Clients: Continue to focus on finance, computers/appliances, travel, goods sales and other categories and clients highly compatible with affiliate marketing. Media: Boost the ability to make proposals to media and strengthen the affiliate network to increase partner payments.

34

Focus on affiliate marketing to solidify the earnings base.

Improve usability by offering Web Service, Performance Recommender and other new services and functions in addition to the existing ASP Service and Consulting Service and by enhancing the control screen with the aim of improving KPIs, i.e., conversions, number of EC sites, and number of media partner sites.

Conversions (No. of transactions)

No. of EC Sites (advertisers) No. of Media Partner Sites

Performance Recommender

Gadgets

Movalue Media Management

Rich Media

Shoppers Club

Web Service

Business Strategy: Focus on CPA business to solid earnings base

35

Appendix

36

Quarterly Earnings Results and Cash Flows (consolidated)Q3 Q4 Q1’07 Q2 Q3 Q4 Q1’08 Q2 Q3 Q4 Q1’09 Q2

Gross Sales 2,216 2,176 2,075 2,246 2,502 2,322 2,497 2,411 2,440 2,584 2,562 2,429

Net Sales 1,343 1,372 1,270 1,425 1,640 1,535 1,706 1,648 1,665 1,765 1,646 1,548

ASP Service 614 618 567 578 620 598 578 600 602 657 674 710

Consulting Service 661 688 587 647 745 679 824 789 791 888 822 819

Sozon 68 66 116 199 276 258 304 259 271 220 150 19Cost of Sales (-) 604 692 653 791 993 924 1,064 1,038 1,058 1,139 1,045 942

Consulting Service 400 448 387 428 515 470 595 571 562 647 600 615Media Buying Cost (Listing Ads) 62 94 72 80 113 113 109 136 133 130 122 143

Sozon 72 55 96 180 262 227 272 228 250 212 157 (5)

Other 70 95 98 103 103 114 88 103 111 150 166 188Gross Profit 739 679 616 634 647 611 641 609 607 627 601 605SG&A Expenses (-) 607 706 608 571 576 554 579 601 598 560 542 558

Compensation 379 435 364 356 366 347 375 407 407 380 376 406Other 228 271 244 215 210 207 204 193 191 180 166 152

Operating Profit 131 (26) 9 62 72 57 62 8 8 67 59 46Recurring Profit 107 (22) 13 66 78 56 41 (3) (2) 59 49 31Extraordinary Gains/Losses (Net) - (255) 4 (23) 15 (17) - (1) - (76) 16 1Pretax Profit 107 (278) 17 43 93 39 41 (4) (2) (17) 66 33

Tax Provision (11) (311) 1 189 (1) (7) 1 117 1 (6) (1) 7Quarterly Net Profit 118 33 17 (146) 94 46 40 (121) (3) (11) 68 25Quarterly Operating Cash Flow 249 (92) 81 135 114 (42) 83 (8) 29 95 97 34

Free Cash Flow 170 (125) 32 97 66 (457) (129) (38) 154 24 51 16

(Million JPY)

37

Business DataQ3’06 Q4 Q1’07 Q2 Q3 Q4 Q1’08 Q2 Q3 Q4 Q1’09 Q2

Media Partner Sites (thousand) 317K 359K 404K 461K 498K 534K 577K 607K 640K 672K 703K 728K

EC Sites (billed basis *1) 1,515 1,870 2,066 2,400 2,339 2,118 2,617 2,687 2,760 2,876 2,865 2,731

ASP Service 1,215 1,270 1,259 1,291 1,278 1,225 1,185 1,161 1,142 1,150 1,094 1,123

Consulting Service 90 92 109 110 117 133 142 143 141 143 146 153

Listing Ads *2 210 508 698 999 944 760 1,290 1,383 1,477 1,583 1,625 1,455

Web-based EC Sites 1,181 1,242 1,241 1,290 1,285 1,240 1,192 1,175 1,150 1,148 1,068 1,056ASP Service 1,097 1,160 1,137 1,189 1,178 1,117 1,059 1,041 1,018 1,014 932 915

Consulting Service 84 82 104 101 107 123 133 134 132 134 136 141

Mobile EC Sites 124 120 127 111 110 118 135 129 133 145 172 220ASP Service 118 110 122 102 100 108 126 120 124 136 117 99

Consulting Service 6 10 5 9 10 10 9 9 9 9 10 12

Movalue - - - - - - - - - - 45 109ValueCommerce Web Service

No. of products registered in the product database (Million)

- - 7.0 7.8 12.4 15.6 21.9 22.2 25.4 30.4 33.2 34.7

EC Sites - - 11 42 70 101 115 125 138 155 168 191

Media partners (thousand) - - 0.1K 2.3K 6.5K 11.0K 15.5K 22.2K 28.2K 33.6K 35.3K 38.3KGross Merchandise Volume (Million) 16,103 15,861 18,853 20,588 23,916 22,572 23,030 23,130 25,283 25,594 30,989 32,664Number of Transactions (Million) 2.11 2.13 2.24 2.43 2.71 2.47 2.51 2.51 2.71 2.80 3.90 4.58Partner Payments (Million) 1,324 1,307 1,245 1,308 1,432 1,305 1,410 1,374 1,381 1,503 1,559 1,546Headcount (Consolidated) 219 234 216 209 209 213 216 257 265 266 259 247

Permanent 179 194 187 183 182 183 181 216 223 231 232 221Temporary 40 40 29 26 27 30 35 41 42 35 27 26

*1 Number of billed EC sites *2 Number of EC sites billed for the former Matchsmart service and for the Storematch service

38

Corporate InformationCorporate Name : ValueCommerce Co., Ltd.

Ticker Symbol : 2491 (TSE Mothers)

Established : Mar, 1996

Location : Nihonseimei Akasaka Building 5F, Akasaka 8-1-19, Minato-ku, Tokyo, Japan, Zip 1070052

Representative : Chairman of the Board and President Brian Nelson

Businesses : Online ad distribution and management servicesConsulting for helping boost online sales capabilities

Search Engine MarketingAffiliate : JP21 Inc. (Media Operation)

Mission : To provide high quality and effective services

Vision : To be the global leader in Internet sales and marketingservices

Sales 6,786

Operating Profit

Recurring Profit

146

93

Net Profit (95)

Net Worth 3,646

Headcount 266

2008 Financial Results (consolidated)

(as of the end of Dec. 2008)

Sales Breakdown (consolidated)

Affiliate Marketing ServiceSozon

15.5%

84.5%

(Million JPY)

39

Investor RelationsManagement Department

Phone: 03 4590 3742 (Direct)Fax: 03 4590 3888 E-mail: investorinquiry＠valuecommerce.co.jp

Inquiry to：

Forward-looking statements contained in this presentation material are based on information available at the time of preparation and involve risks and uncertainties. Please note that our future results may differ materially from our outlook at the moment due to changes in various factors.

Descriptions on the industry and others are based on different data that are considered reliable, but we do not guarantee their accuracy or integrity.

We offer this material on the assumption that you will use it for any purpose at your own risk and discretion. Under no circumstances will we accept any liability for your use of this material.

Thank you very much.

Corporate Website: http://www.valuecommerce.com/ir