KEYEAST PR NEWS #36

[KEYEAST] Merger between Keyeast subsidiary BOFi and listed Japanese.
2009.4.8


Merger between Keyeast subsidiary BOFi and listed Japanese company DA(Asian Wave global entertainment content company)


- Merger between Keyeast subsidiary BOFi and the Japanese company DA, final approval of general meeting of shareholders.
- Keyeast and special related person to become largest shareholders of DA with 13,875,620 shares (25.5%).
- Reorganization resulting in Yajima Shigehiko and Bae Sung Woong at the helm.


The Asian cultural content company Keyeast Co., Ltd. (www.keyeast.co.kr) officially announced that the merger between subsidiary BOF International Inc.(BOFi) and the listed Japanese company Digital Adventure Inc. (DA) received final approval on March 19 at the DA extraordinary general meeting of shareholders.


This transaction will be a merger of BOFi into DA and will result in the BOFi shareholder Keyeast and a special related person holding 13,875,620 common shares of DA.


This means that Keyeast and the special related person will be the largest shareholders of DA (25.5% shareholding ratio) and that through this exceptional case whereby a domestic entertainment company becomes a shareholder of a listed Japanese company, Keyeast will be able to participate in the Asian Wave cultural and entertainment businesses with a more strategic approach.


In May when the merger is expected to be completed, Yajima Shigehiko (current CEO of DA) and Bae Sung Woong (current CEO of BOFi) will lead the new company. The companies plan to utilize the current businesses of DA and the superior content of BOFi to create a profitable business model based on company synergies.


A spokesperson for BOFi stated that “both parties agreed upon and caused this merger to happen to form a mutually beneficial partnership through the utilization of DA’s know-how regarding the Japanese market and its vast distribution network plus BOFi’s superior content.” In addition, the spokesperson said that “we will focus on making this merger a significant contributing element to our overall vision of being the leading cultural/entertainment company of Asia.”


DA is the leading Japanese digital content distribution enterprise, which was established in 1971 and which, among other things, is involved in the distribution of digital content, licensing businesses with a focus on Korean television series, and the broadcast business. It recently recorded sales of 4,171,095,000 yen and a net profit of 323,587,000 yen (March 2008 accounting period and based upon consolidated financial statements).


[KEYEAST]
[Source : http://www.keyeast.co.kr/en/prcenter/prcenter_view.asp?counter=1&keyfield=&keyword=&id_num=36]