* Media Web takeover to generate great synergy by strengthening game marketing capability

- Media Web, which develops management systems for net cafes and has direct contact with gamers, should improve CJ Internet’s game marketing effectiveness

CJ Internet announced on Mar 10 that it acquired 268,588 shares in Media Web (68.8% stake) for W15.3bn. Media Web’s business is to provide all services and materials needed for PC cafe management and offer online game statistics. Media Web’s subsidiary, Media Webi, which was spun off in August 2009, focuses on net cafe management systems and most of its earnings come from online ads. Its management system, Pica-Air is installed in more than 40% of Korea’s 20,000 net cafes. Media Webi provides Pica-Air to net cafes at no charge and sells its marketing tools to online game companies. Tools include online ads posted on web-browsers and Pica-Air in net cafe PCs, and coupon distribution for net cafe use and online game play. Media Web’s and Media Webi’s 2009 sales were W6.9bn and W3.3bn, respectively.

We expect this takeover to help CJ Internet surpass competitors in terms of more effectively promoting its web-board and publishing games to net cafe gamers as the rapid response to gamers’ needs is now possible through the net cafe management system. The company exports its net cafe management systems to Southeast Asia, and we believe there will be additional synergy effect from overseas business.