EBC JAPAN RETAIL, WHOLESALE & DISTRIBUTION COMMITTEE; CURRENT

ACTIVITIES

THE EBC RETAIL, WHOLESALE & DISTRIBUTION COMMITTEE

Goal: To support European members involved in the retail, wholesale and distribution industries.Key Committee members include: Carrefour Japan, Copyrights Japan, DHL Jpan, Ikea Japan, Nestle Japan, Tesco Japan and Caran d’ArcheJapan.

KEY COMMITTEE ISSUES FOR 2005

1. Regulatory burden associated with importing tableware

2. Large-Scale Retail Store Location Law (LSRSLL)

3. Alcohol Licensing4. Impact of the Personal Information Law5. New Issues: Consumption Tax, Parallel

Imports

1. Regulatory burden associated w/importing Tableware

BackgroundThe import of tableware into Japan is governed by the Food Sanitation Law.Procedures for obtaining Approval are quite complex.Procedure includes a processing fee submitted for every tableware product, even for products of different size but made of the same material (this increases the cost of imports into Japan.

Regulatory burden associated w/importing Tableware

Committee RecommendationsRegulations governing the application process should be relaxed by adopting similar import procedures as exist in the EU and other countries.Validity period for import approvals should be extended from one to five years.The requirements that importers submit separate import applications and inspection test for tableware of similar material (but in a different size category, colors or materials) should be simplified or completely abandoned as they have little relevance to food sanitation.

2. Large-Scale Retail Store Location Law (LSRSLL)

BackgroundThere are no definitive rules for when and where to submit applications for a new store based on provisions in the LSRSLL.There is no coordination between the LSRSLL and the Building Permit procedure, but as the application process is so long, some retailers start building before the process is complete (at their own risk, obviously).In some cases local governments have imposed new conditions on applicants, further complicating the store opening procedure.New or foreign retailers are at a major disadvantage.LSRSLL procedures in major cities require an Enviornmental Impact Assessment (EIA), FURTHERcomplicating the procedure.

Large-Scale Retail Store Location Law (LSRSLL)

Committee RecommendationsSince the requirements of the LSRSLL, EIA and Building Permit are similar, the responsible authorities should better coordinate the application procedures to avoid duplication.Applications for business licenses filed w/local authorities should be processed in a fair and consistent manner.Administrative burden placed on applicants seeking to open new stores should be reduced in line with the original intent of the law.

3. Alcohol Licensing

BackgroundAlthough deregulation began in 2001 to liberalize liquor licensing, an increasing number of regions are being designated “Urgent Adjustment Areas” (UAA) under a supposedly temporary measure designed to protect existing liquor retailers from deregulation.No new licenses or transfers of existing licensees will be issued in these areas until the UAA status is removed.If a UAA is renewed every year, foreign firms take a big risk investing in Japan.Those firms that already hold a large store liquor retail license that allows for a limited scope of alcohol sales are not able to apply for a wider-scope liquor license until their current license expires. If these stores are in a UAA, the application for a wider-scope liquor license is rejected entirely.

Alcohol Licensing

Committee RecommendationsUrgent Adjustment Areas should be abolished.Companies should be able to apply for a liquor license that allows for a broader scope of liquor sales without having to wait for their large-scale store license to expire.Recent liberalization of the retail liquor licensing system should be extended to wholesale licensing as well.

4. Personal Information Law

Background (Basic)This newly enacted law is designed to protect individuals’ rights to privacy while preserving the usefulness of personal information for business.Businesses must clearly define “Purpose of Use” for processing personal information; no business may change its Purpose of Use.No business may use personal information beyond its stated Purpose of Use.Businesses may not provide data to third parties without first obtaining the permission of the Principals.Business must notify the principal before providing information to a third party and inform principals of their right to refuse dissemination of personal data to a third party.

Other Committee Issues for Possible Discussion in 2005

Consumption Tax: The change to tax-inclusive labeling is widely thought to be the precursor to a consumption tax increase in the near future, which may further damage a weakened Japanese retail sector. Parallel Imports (Grey Market Goods): The absence of any Japanese law or regulations restricting or prohibiting Parallel Imports into the country will have a negative impact on retailers and manufacturers.

Copyrights Japan/Asia (MarketReach)

The Copyrights Group, Tokyo OfficeThe Copyrights Group, Tokyo Office

Copyrights Japan is a wholly-owned subsidiary of The Copyrights Group. A bilingual staff of 25 oversees licensing, market consulting and merchandising activities with such major blue-chip Japanese corporations as Dentsu, Mitsubishi Trust & Banking Corp, Konica, Japan Travel Bureau, Japan Railways, Bandai, Takara, Noritake, Mitsukoshi and Takashimaya. Established in 1954, Copyrights’ Tokyo office celebrated its 50th

anniversary in 2004.

CopyrightsCopyrights’’ licensing portfolio features over licensing portfolio features over 20 properties ranging from Children's Classics 20 properties ranging from Children's Classics such as Peter Rabbitsuch as Peter Rabbit™™ and Paddington and Paddington BearBear™™ to Fine Art properties such as the to Fine Art properties such as the Paintings of Sir Winston Churchill and Paintings of Sir Winston Churchill and Corporate Brands including Marie ClaireCorporate Brands including Marie Claire™™..

QUALITY & PARTNERSHIPQUALITY & PARTNERSHIP

Copyrights oversees the approval of over Copyrights oversees the approval of over 25,000 new products per year from over 25,000 new products per year from over 1,000 licensee partners.1,000 licensee partners.

Copyrights Japan/Asia Organizational Copyrights Japan/Asia Organizational StructureStructure

Copyrights Asia/Japan

Copyrights Group

Property Owners

General Affairs

Property Owners

AccountingTeam

Marketing Group

Design Studio

Marketing Team

Design Approval Team

MarketReach Legal AffairsInt’’’’l Team

East Asian Sub-Agent BP, PB, LCM, SP, GPC, LGR, CC

RM Enterprises

Japan Sales Group

New Business Development Team

LicenseeManagement Team

Japan Retail OverviewJapan Retail OverviewJapan Retail OverviewJapan Retail OverviewJapan Retail OverviewJapan Retail OverviewJapan Retail OverviewJapan Retail Overview

JapanJapan’’s Retail Landscapes Retail LandscapeUrban areas dominated by High and mediumUrban areas dominated by High and medium--end department stores.end department stores.General merchandise stores (GMS) often located in suburban areaGeneral merchandise stores (GMS) often located in suburban areas. s. Between these levels are specialty stores (Toys Between these levels are specialty stores (Toys ““RR”” Us, Kiddyland, Us, Kiddyland, Uniqlo, etc.). Uniqlo, etc.). Japanese retail characterized by multiple layers of wholesalersJapanese retail characterized by multiple layers of wholesalers and and distributors that control product distribution for practicalldistributors that control product distribution for practically every product y every product category. category. The network of powerful distributor/wholesalers contribute to tThe network of powerful distributor/wholesalers contribute to the high he high price of goods in Japan; each layer of distribution requires price of goods in Japan; each layer of distribution requires a cut of the a cut of the total price of the product. total price of the product. Despite the wholesale/distributor Despite the wholesale/distributor ““cartelscartels”” and their cozy relationship with and their cozy relationship with retailers, proactive consumer product companies have been ablretailers, proactive consumer product companies have been able to gain e to gain direct access to retailers by offering them unique or exclusidirect access to retailers by offering them unique or exclusive product or ve product or highhigh-- profile events. profile events.

JapanJapan’’s Retail Landscapes Retail LandscapeIn a recessionary economy, Japanese consumers In a recessionary economy, Japanese consumers today are just as likely to shop for discounted today are just as likely to shop for discounted merchandise as they are for European luxury merchandise as they are for European luxury brands (with retail markbrands (with retail mark--ups of two to three ups of two to three times the retail prices in Europe and America). times the retail prices in Europe and America). A surge in bargain shopping has opened the A surge in bargain shopping has opened the door to Westerndoor to Western--style mass discount retailers style mass discount retailers (e.g. Wal(e.g. Wal--MartMart--Seiyu and CarrefourSeiyu and Carrefour--Aeon Aeon alliances).alliances).

The Market and Retailing VisThe Market and Retailing Vis--àà--vis vis LicensingLicensing

Japan has experienced four recessions over the last Japan has experienced four recessions over the last decade.decade.However, the Japanese licensing market can support However, the Japanese licensing market can support hundreds of properties. hundreds of properties. Core licensing categories in Japan are apparel, toys, Core licensing categories in Japan are apparel, toys, stationery and promotions (banks, fast food restaurants, stationery and promotions (banks, fast food restaurants, food and beverages and entertainment). food and beverages and entertainment). The Character licensing market is extremely fragmented. The Character licensing market is extremely fragmented. Manga and Anime properties growing; preManga and Anime properties growing; pre--school school properties are not.properties are not.DisneyDisney’’s Winnie the Pooh consistently ranks at the top of s Winnie the Pooh consistently ranks at the top of the Japanese licensing industry, with 10% of the licensed the Japanese licensing industry, with 10% of the licensed merchandise market, but that share is shrinking rapidly. merchandise market, but that share is shrinking rapidly.

The Market and Retailing VisThe Market and Retailing Vis--àà--vis vis LicensingLicensing

Traditional anchors for licensed character Traditional anchors for licensed character product sales: specialty and department product sales: specialty and department stores. stores. Most department chains and many GMS Most department chains and many GMS are in steep financial decline.are in steep financial decline.Book stores and convenience stores have Book stores and convenience stores have become major retail players for licensed become major retail players for licensed products and DVDproducts and DVD’’s. s.

The Market and Retailing VisThe Market and Retailing Vis--àà--vis vis LicensingLicensing

Soft retail and growing number of large Soft retail and growing number of large store chain bankruptcies reflects weak store chain bankruptcies reflects weak economy.economy.Glut of characters and underperforming Glut of characters and underperforming stores = less shelf space for small/midstores = less shelf space for small/mid--sized licensed properties. Consequently, sized licensed properties. Consequently, retailers are riskretailers are risk--averse.averse.

Japanese Market OverallJapanese Market Overall

A low level of Economic GrowthA low level of Economic GrowthLagging Sales at Department StoresLagging Sales at Department StoresShrinking Gift MarketShrinking Gift MarketHeating up of Competition in Character Heating up of Competition in Character Licensing MarketLicensing MarketFragmentation in Consumption PatternsFragmentation in Consumption Patterns

ButBut……

Peter RabbitPeter Rabbit……Bucking the TrendBucking the Trend

Peter Rabbit trends against the negative market.Peter Rabbit is one of the only major properties currently experiencing steady growth.Massive licensing projects (Nagashima, recent department store events and the Peter Rabbit Tea Garden) indicate that major companies consider the Property a viable growth and investment opportunity long into the future.

Peter Rabbit Major Licensing Peter Rabbit Major Licensing Partners Partners 　　

Yamaka:Launched tableware line in June 2004. Added Calendar Plate, Christmas Plate and Year Plate as collectable items, and expanded product line into various retail channels.

Dentsu (Mitsubishi-Trust Bank):Will continue to use Peter Rabbit as sales promotional character for at least three more years.

Takara:　　　　　　　　　　　　　　　　　　　　　 Launched children’s wear (Classic Art) in Autumn 2004 and baby/kids wear (New

Art) in Spring 2005.　　　　Sekisui Life Tech:　　　　　　　　　　　　　　　　　　　　　　　　

Large expansion of SKU’s through imported items from Korean licensees Kitchen & Bath and Aboob Baby.

IP Management (Fujiya):Launched four snack items with small toys in June 2004. Expanded sales nationwide, into more retail channels. (GMS, Convenience Stores). Now planning second series line,

Peter Rabbit Retail/Promotional Peter Rabbit Retail/Promotional ActivityActivity

Events Nagashima Resort (More on that later…)

“FUN TASTIC” Peter Rabbit events in Ito Yokado (Major GMS chain). -Ito Yokado, Kiba (2004. 3. 13.)-Ito Yokado, Nara (2004. 3. 24.)-Ito Yokado, Kasai (2004. 4. 3.)-Ito Yokado, Nishikicho (2004. 5. 12.)

Marketing ActivitiesMarketing Activities20042004

・・““FUN TASTIC FUN TASTIC ”” Peter Rabbit Event SupportPeter Rabbit Event Support

-Advertisement in Yomiuri Newspaper (March 11, 2004)-Peter Rabbit Ceramics Signing Ceremony (with Press Conference and PR activities)-Press Conference for launch of Peter Rabbit and Friends (July 29,2004) at British

Embassy-Intellectual Property Warning Ads (２x)-Licensee Support (Developed P.O.S. and other Promotional Materials)-Peter Rabbit and Friends B-2-B Advertisement

““FUN TASTIC FUN TASTIC ”” Peter Rabbit EventPeter Rabbit Event Peter Rabbit and Friends Press ConferencePeter Rabbit and Friends Press Conference

Peter Rabbit Shop/Exhibit At Peter Rabbit Shop/Exhibit At NihonbashiNihonbashiTakashimayaTakashimaya

The Event shop

Entrance HallEntrance Hall

Zone 1Zone 1History of History of The Tale Of Peter RabbitThe Tale Of Peter Rabbit

First publication copies First publication copies and other antique and other antique editions of Beatrix editions of Beatrix PotterPotter’’s books were s books were exhibited. Items kindly exhibited. Items kindly loaned by loaned by DaitoDaito--BunkaBunka--University.University.

Zone 2Zone 2Scenes from Peter RabbitScenes from Peter Rabbit

This section shows a georama of This section shows a georama of Mr. McGregorMr. McGregor’’s garden.s garden.The mechanized display shows The mechanized display shows Peter being chased by Mr. Peter being chased by Mr. McGregor. McGregor.

Zone 3Zone 3Peter Rabbit and His FriendsPeter Rabbit and His Friends

In this zone, both In this zone, both Peter RabbitPeter Rabbit’’s and his s and his friendsfriends’’ storiesstorieswere introduced through were introduced through information panels and threeinformation panels and three--dimensional book dimensional book book displays.book displays.

Zone 4Zone 4Peter Rabbit Around the WorldPeter Rabbit Around the World

Very old and rareVery old and raremerchandising products merchandising products were from around the world were were from around the world were on display.on display.

Zone 5Zone 5Introducing The Lake DistrictIntroducing The Lake District

British Embassy British Embassy and British Touristand British TouristAuthority (Visit Britain) Authority (Visit Britain) organized section on organized section on The Lake District.The Lake District.

Marketing ActivitiesMarketing Activities20052005・・Nagashima Resort PR

・・Peter Rabbit and Friends--Advertisement BAdvertisement B--22--CC×３×３--PR ActivitiesPR Activitiesa) Product givea) Product give--away for Readers of six baby magazinesaway for Readers of six baby magazinesb) New Products Press Release b) New Products Press Release

--Licensee SupportLicensee Support-- Design Concept Sheet, P.O.S. materialsDesign Concept Sheet, P.O.S. materials

・・Promotional Activity with “Genki” MagazineSticker play pagesSticker play pages to run for 3 months (Starting in May or June 2005 )

Peter RabbitPeter Rabbit™™ Tea GardenTea Garden

Peter RabbitPeter Rabbit™™ Tea Garden PLANTea Garden PLAN

CafCaféé serving food and beverages; to include small serving food and beverages; to include small product corner featuring existing and original licensed product corner featuring existing and original licensed product.product.

1st shop opening on 31 May 20031 May 200５５ in Jiyugaoka (Tokyo)/ in Jiyugaoka (Tokyo)/ 100 square meters100 square metersNext Targets: Aoyama (Tokyo), Okayama, Utsunomiya, Aoyama (Tokyo), Okayama, Utsunomiya, Fukuoka, etc.Fukuoka, etc.Larger stores (Sizes Larger stores (Sizes Between 165Between 165㎡㎡ and 660and 660㎡㎡))PProduct corners featuring existing and original licensed roduct corners featuring existing and original licensed productproduct corners to be further expanded.corners to be further expanded.

Peter RabbitPeter Rabbit™™ Tea Garden PlanTea Garden Plan

Future PlansFuture Plans

Tea Garden e-commerce siteEstablishment of homepage: XX’’mas, 2005mas, 2005Details: Offering such Tea Garden products as Offering such Tea Garden products as

Scones, Jam, Clotted Cream, Fruits and Scones, Jam, Clotted Cream, Fruits and Vegetables and other original product Vegetables and other original product exclusive for sale in the Tea Gardens to exclusive for sale in the Tea Gardens to be sold on the web site.be sold on the web site.

Nagashima Resort Nagashima Resort -- FacilitiesFacilities

Activities during the May 2004Activities during the May 2004Golden Week HolidayGolden Week Holiday

Nagashima Spa Land Nagashima Spa Land -- EntranceEntrance

Nagashima Spa Land Nagashima Spa Land -- PathwayPathway

Shuttle BusShuttle Bus

CostumesCostumes

Costume EventsCostume Events

Quiz eventsQuiz events

Product Wagon KioskProduct Wagon Kiosk

The CostumesThe Costumes

Greeting ServiceGreeting Service

Meet & GreetMeet & Greet

Shop Shop -- Nagashima Spa LandNagashima Spa Land

Wagon Wagon –– Nagashima Spa LandNagashima Spa Land

Gift Shop; Hotel HanamizukiGift Shop; Hotel Hanamizuki

Gift Shop; Hotel OliveGift Shop; Hotel Olive

Birthday Card HandBirthday Card Hand--out out (For Peter Rabbit(For Peter Rabbit’’s Birthday, Sept. `04)s Birthday, Sept. `04)

December 2004 December 2004 Winter Solstice Winter Solstice

Christmas Card Mass MailingChristmas Card Mass Mailing

Entrance Sign Board Entrance Sign Board

Panoramic ViewPanoramic View

26 26 FebruaryFebruary--31 March 2005 31 March 2005 PETER RABBITPETER RABBIT EventEvent

Activity Logo/ThemeActivity Logo/Theme

Main EntranceMain Entrance

Opening CeremonyOpening Ceremony

Museum SpaceMuseum Space

Play ZonesPlay Zones

Sales CornerSales Corner

Original ProductsOriginal Products

NAGASHIMA Future PlansNAGASHIMA Future Plans

Summer 2005Summer 2005Hotel stay plan at the Hotel Nagashima and Hotel stay plan at the Hotel Nagashima and Hotel Olive.Hotel Olive.Providing of Providing of ““JapaneseJapanese--designeddesigned”” Hotel amenities Hotel amenities (Yukata, Yunomi).(Yukata, Yunomi).Expanding number of original Licensed Products.Expanding number of original Licensed Products.

Near FutureNear FutureDeveloping Developing ““Kids AreaKids Area”” in Nagashima Spa in Nagashima Spa Land; to include rides and other attractions.Land; to include rides and other attractions.

Future PlansFuture Plans…… 　　Develop Product Lines based on new and unique design treatments. 　　　　

Introduction of a new Japanese Motif design treatment for Nagashima exclusive products, including:1. Souvenir, Food/Snack products, etc.

Already launched in Spring 2005.2. Gift Items (Tableware, Food Packaging, Towels, etc.) for Winter

2005 period.

OTHER COPYRIGHTS OTHER COPYRIGHTS PROPERTIESPROPERTIES……

MAISYMAISY

PADDINGTON BEARPADDINGTON BEAR

MAUSMAUS

MAISY; UPCOMING ACTIVITIESMAISY; UPCOMING ACTIVITIES

Japan Visit of MaisyJapan Visit of Maisy’’s Creator, Lucy s Creator, Lucy CousinsCousins

Lucy CousinsLucy Cousins’’ visit will provide a visit will provide a shortshort--term boost in licensed product term boost in licensed product sales.sales.Major retail events in Tokyo being Major retail events in Tokyo being planned to coincide with Lucyplanned to coincide with Lucy’’s visit.s visit.LucyLucy’’s visit will boost the confidence s visit will boost the confidence of Japanese licensees, publisher and of Japanese licensees, publisher and the DVD/Video licensee (Universal). the DVD/Video licensee (Universal). It will also send a positive message to It will also send a positive message to potential manufacturers and potential manufacturers and promotional partners. promotional partners.

Retail ExpansionRetail ExpansionCopyrights leveraging its extensive retail connections to hold rCopyrights leveraging its extensive retail connections to hold retail etail sales events for MAISY. Next planned event, during Lucy Cousinsales events for MAISY. Next planned event, during Lucy Cousin’’s s visit, will be in Shinjuku Isetan Dept. Store.visit, will be in Shinjuku Isetan Dept. Store.A successful event will go a long way in convincing store buyersA successful event will go a long way in convincing store buyers that that MAISY is viable and its licensed product worth carrying on a lonMAISY is viable and its licensed product worth carrying on a longg--term basis.term basis.Increase licensed product in book store channelsIncrease licensed product in book store channels--create corners create corners (with DVD/video)(with DVD/video)HigherHigher--end specialty store retail development (Sony Plaza and Loft)end specialty store retail development (Sony Plaza and Loft)Akachan Honpo (70 stores) product corner/section development.Akachan Honpo (70 stores) product corner/section development.

Loft Nagoya Maisy Sales CornerLoft Nagoya Maisy Sales Corner

Kiddyland Product CornerKiddyland Product Corner

Maisy Hiroshima ParcoMaisy Hiroshima Parco

Marketing ActivityMarketing ActivityIn 15 years, Maisy has created a base of young

fans and their mothers; over the years those young fans have grown, and Copyrights is now planning to market the property to the all-important young Japanese female consumer target market.

15 15 Year AnniversaryYear Anniversary

Major Activities:Major Activities:１．１．Lucy Cousins Book Fair (Kaiseisha)Lucy Cousins Book Fair (Kaiseisha)2. Lucy2. Lucy’’s Visit, and ancillary eventss Visit, and ancillary events3. Maisy Fair 3. Maisy Fair

Maisy FairMaisy FairThe Central retail event to be held at the main branch of The Central retail event to be held at the main branch of Isetan Department store in Shinjuku, TokyoIsetan Department store in Shinjuku, TokyoActivity may include a stage show Activity may include a stage show Tentatively scheduled from 14 September to 4 October Tentatively scheduled from 14 September to 4 October Four to five additional retail events and a possible art exhibiFour to five additional retail events and a possible art exhibitiontioncurrently under discussioncurrently under discussionOther events, including original art exhibition, also under Other events, including original art exhibition, also under discussiondiscussion

PADDINGTON BEARPADDINGTON BEAR

PADDINGTON = Classic PADDINGTON = Classic

A quintessential English classic A quintessential English classic The property that launched Copyrights as The property that launched Copyrights as a licensing company in 1973.a licensing company in 1973.A number of solid Japanese and Asian A number of solid Japanese and Asian licensees.licensees.

PADDINGTON = HighPADDINGTON = High--Exposure Exposure PromotionsPromotions

National and regional promotions add up to National and regional promotions add up to impressions in the Tens of millionsimpressions in the Tens of millions

Joshin Denki (Manufacturers of electronic Joshin Denki (Manufacturers of electronic appliances and other items); giftappliances and other items); gift--withwith--purchase campaign from November 20 to purchase campaign from November 20 to December 2004. Premium item: fleece December 2004. Premium item: fleece blankets.blankets.

KENTUCKY FRIED CHICKEN JAPAN KENTUCKY FRIED CHICKEN JAPAN promotion (1,050 stores); Premium promotion (1,050 stores); Premium campaign for kids menu campaign for kids menu ““Smile SetSmile Set””: : launching Autumn 2005 launching Autumn 2005

LawsonLawson’’s Ins In--store pointstore point--based based premium campaign (over 7,500 premium campaign (over 7,500 stores) to promote Japanstores) to promote Japan’’s s number two convenience store number two convenience store chainchain’’s baked goods line, Oct 5 s baked goods line, Oct 5 to Nov. 15, 2004. Premium item: to Nov. 15, 2004. Premium item: Paddington year 2005 calendar.Paddington year 2005 calendar.A second campaign planned for A second campaign planned for later in 2005later in 2005

Paddington Bear is a U.N. spokescharacter. Paddington Bear is a U.N. spokescharacter. Since 1989, Paddington Bear has appeared on Since 1989, Paddington Bear has appeared on fundraising material for UNICEF. UNICEF is fundraising material for UNICEF. UNICEF is actually expanding usage of Paddington Bear, actually expanding usage of Paddington Bear, who appears on charity fund boxes, banners who appears on charity fund boxes, banners and stickers distributed by UNICEF. and stickers distributed by UNICEF.

Tokyo Metro promotion with electronic pre-paid fare cards, in-station and train postersCreates over 6 million “impressions”daily, and will continue through the end of 2005.

MAUSMAUS

Current Licensing StatusCurrent Licensing Status

Great start for the Great start for the MausMaus™™. licensing program; . licensing program; the initial launch has exceeded all expectations the initial launch has exceeded all expectations and the sales team has established a foundation and the sales team has established a foundation for future and sustained property growth in Japan. for future and sustained property growth in Japan.

Sales activities since January 2005: 12 licensees Sales activities since January 2005: 12 licensees signed and 2signed and 2--4 more licensees will be added in the 4 more licensees will be added in the next few weeks. next few weeks.

Petit Grand PublishingPetit Grand PublishingLaunch Date: Launch Date: June 2005June 2005

New LicenseesNew Licensees

Merchandise LicensingMerchandise LicensingSeveral domestic licensees already Several domestic licensees already developing product for Japanese marketdeveloping product for Japanese marketSome already have an interest in exporting Some already have an interest in exporting product to Germanyproduct to GermanyCAKKCAKK’’s primary goal for 2005 is to s primary goal for 2005 is to strengthen sales activities and achieve strengthen sales activities and achieve strategic growth in the core licensing strategic growth in the core licensing categories.categories.

Heart Art Collection Heart Art Collection -- Stationery, Calendars and Mugs; Stationery, Calendars and Mugs; launch date: April 2005launch date: April 2005

IchiIchi--Hiro Hiro -- Towels and TTowels and T--shirts; launchshirts; launch datedate: : summer summer 20052005

EstonaEstona –– Imported Plush from Germany; Launch date: Spring Imported Plush from Germany; Launch date: Spring 20052005

Watanabe Watanabe –– Apparel; Launch Date: Autumn 2005Apparel; Launch Date: Autumn 2005

Promotional LicensingPromotional Licensing

Pushed proactively to persuade Pushed proactively to persuade promotional licenses to expose the promotional licenses to expose the property in Japan market despite the property in Japan market despite the fact that the property is new and fact that the property is new and relatively unknown.relatively unknown.Capitalizing on the exposure of Capitalizing on the exposure of ““Germany in Japan 2005/2006Germany in Japan 2005/2006””..GermanyGermany--related related companies/institutions now using companies/institutions now using MAUSMAUS™™..

SKW JapanSKW JapanAlpen Salz; December 2004Alpen Salz; December 2004Meggle Baguette (French Bread); AprilMeggle Baguette (French Bread); April--June 2005 June 2005

Dokkyo UniversityDokkyo UniversityPublic Identity promotion of Dokkyo University.Public Identity promotion of Dokkyo University.As a CoAs a Co--Branding program, the school mascot Branding program, the school mascot ““DOKUDOKU＋α＋α＋α＋α＋α＋α＋α＋α”” will be used together with Maus.will be used together with Maus.

a division of Copyrights a division of Copyrights Japan LimitedJapan Limited

MarketReach is a consultancy MarketReach is a consultancy representing the interests of western representing the interests of western consumer product companies wishing to consumer product companies wishing to enter the Japanese marketplace. enter the Japanese marketplace.

MarketReach offers a proven track record MarketReach offers a proven track record of business success, wideof business success, wide--ranging network ranging network of commercial and governmental contacts, of commercial and governmental contacts, and a team of product specialists to and a team of product specialists to companies seeking a smooth entry into companies seeking a smooth entry into Japan.Japan.

MarketReach currently consults for the MarketReach currently consults for the Japanese business interests of Enesco, one Japanese business interests of Enesco, one of the worldof the world’’s largest gift product s largest gift product companies.companies.

--MerchandisingMerchandising

MarketReach is a division of Copyrights, working as a consumer MarketReach is a division of Copyrights, working as a consumer products consultancy to build, enrich and sustain its clientsproducts consultancy to build, enrich and sustain its clients’’businesses.businesses.

MarketReach offers a full retailing, merchandising and product MarketReach offers a full retailing, merchandising and product sourcing service to clients without their own infrastructure sourcing service to clients without their own infrastructure in Japan.in Japan.

MarketReach works closely with major wholesalers, trading MarketReach works closely with major wholesalers, trading companies and importers to ensure the smooth and successful companies and importers to ensure the smooth and successful operation of these and other merchandising ventures.operation of these and other merchandising ventures.

MarketReach has developed close and productive relationships MarketReach has developed close and productive relationships with store buyers at department store chains and prestigious with store buyers at department store chains and prestigious specialty stores (where the wholesaler doesnspecialty stores (where the wholesaler doesn’’t play as large a t play as large a role).role).

FifteenFifteen--year management of the year management of the retail concession for the Japanese retail concession for the Japanese performances of Sir Andrew Lloyd performances of Sir Andrew Lloyd WebberWebber’’s musicals, Cats and s musicals, Cats and Phantom of the Opera at theatres Phantom of the Opera at theatres throughout Japan.throughout Japan.

Cats Sendai Theatre Retail Cats Sendai Theatre Retail ConcessionConcession

Working with major department stores such as Takashimaya and Working with major department stores such as Takashimaya and Mitsukoshi to organize retail sales events for properties licensMitsukoshi to organize retail sales events for properties licensed by ed by Copyrights.Copyrights.18 department store events across Japan attracted over 1,000,000visitors and retail sales of ¥410 million

The World of Peter Rabbit The World of Peter Rabbit Art ExhibitionArt Exhibition

Flower Fairies Retail Event @ Takashimaya, Flower Fairies Retail Event @ Takashimaya, Shinjuku (Sept. 2004)Shinjuku (Sept. 2004)

Peter Rabbit @ Peter Rabbit @ Nagashima Resort, Nagashima Resort, Mie Prefecture (near Nagoya)Mie Prefecture (near Nagoya)

Management of the United Kingdom Management of the United Kingdom PavilionPavilion’’s retail concession at the World s retail concession at the World Expo 2005 Aichi, Japan.Expo 2005 Aichi, Japan.

Management of the United Kingdom Management of the United Kingdom PavilionPavilion’’s retail concession at the Worlds retail concession at the World

Expo 2005 Aichi, JapanExpo 2005 Aichi, Japan..

UK Pavilion Shop @ World Expo UK Pavilion Shop @ World Expo

2005 Aichi, Japan2005 Aichi, Japan

Market Entry ServicesProduct Sector & Competition Reports;

SWOT Analysis

Business Incubation & RepresentationRepresentation, Business Partner

Matching; Sales & Services Outsourcing;Showroom & Office Facilities, Staff Sourcing

Strategic Consulting4Ps (Product, Pricing, Promotion &

Placement) Consultation

Brand Communications StrategyVisual Merchandising, Advertising,

Public Relations Strategy & Execution, Events

Legal ServicesIntellectual Property Strategy (including

trademark registration); Attorney Introductions; Contract Review/Localization

MarketReachMarketReach

Merchandising ServicesRetailing, Merchandising and

Product Sourcing; Sales Event Planning & Execution

MarketReach ServicesMarketReach Services

aa