"April 1, 2005" We would like to announce that, as of March 31st, 2005, Memory-Tech Corporation ("Memory-Tech"), IMAGICA Corporation ("IMAGICA"), and Bandai Visual Co., Ltd. ("Bandai Visual"), jointly took a stake in Q-tec Inc. ("Q-tec").

1. Overview

a)	On March 31st, 2005, Memory-Tech (existing stock holder of Q-tec), IMAGICA and Bandai Visual jointly acquired a 73.9% stake in Q-tec, which was held by Vision Capital Corporation, with its principal business at 2-6-2 Marunouchi Chiyoda-ku, Tokyo, and Nobuaki Hanekura as a representative.
b)	The stockholder structure after the capital alliance will be as follows: Memory-Tech 50.5% IMAGICA 35% Bandai Visual 10.0% Q-tec management 4.5%

2. Objective of the Alliance

a)	Q-tec became independent from Pioneer Corporation through MBO (Management Buyout) in 2004. It is now one of the larger post production companies specializing in editing, authoring and encoding contents such as animation, movie and commercial message. Q-tec's particular strength in editing, authoring and encoding broadcast and DVD has made the company one of the finest in the industry. In response to the rapid growth of DVD software market and promising growth of digital contents market such as animation both domestically and internationally, Q-tec aims to stabilize the management foundation through the alliance and continue to offer high quality film making technologies that will accommodate the media.
b)	Memory-Tech is a leading optical disc maker of DVD and CD who provides integrated service of planning, manufacturing and distribution to the Japanese and U.S. major film and music companies. Particularly, the company was the first maker to establish a disc production system of the next-generation DVD ("HD DVD"). By strengthening the relationship with Q-tec and IMAGICA who have high technology in HD field, Memory-Tech aims to expand the value chain in HD DVD and DVD businesses including other post production business.
c)	IMAGICA was established in 1935 as the first film laboratory in Japan. The company has provided total post production services including movie film developing and other image processing. Taking advantage of the post production technology, IMAGICA now offers the total solution including planning, production, distribution and management on images. IMAGICA also aims to expand DVD related business through this alliance.
d)	Bandai Visual has been a pioneer of packaged software and created a large number of image contents such as animated film of Mobile Suit Gundam. The company is supported and trusted as the best in the animation industry targeted for children 10 years old and up. Bandai Visual has worked with Q-tec on the post production of animated films for years and aims to offer higher quality products by strengthening the cooperation.

3. For your reference, the general information of each company is provided as follows:

General information of Q-tec

Company name: Q-tec Inc.
Established: April, 1989
Headquarters: 6-14-15 Akasaka Minato-ku, Tokyo
Description of business: Editing, planning and production of image and sound for animation, movie and commercial messages
Representative: Yoshihisa Morimoto, President & C.E.O

General information of Memory-Tech

Company name: Memory-Tech Corporation
Established: September, 1985
Headquarters: 2-2-27 Minami Aoyama Minatoku, Tokyo
Description of business: Planning, production and distribution of optical discs including DVD and CD
Representative: Shiroharu Kawasaki, President & C.E.O

General information of IMAGICA

Company name: IMAGICA Corporation
Established: April, 2002 (Founded: February, 1935)
Headquarters: 2-14-1 Gotanda Shinagawa-ku, Tokyo
Description of business: Image technology services including movie film development, video image editing, digital composition and production of packaged image; CS digital broadcasting; planning and production of image contents; development and sales of image related systems
Representative: Fumio Nagase, President & C.E.O

General information of Bandai Visual

Company name: Bandai Visual Co., Ltd.
Established: August, 1983
Headquarters: 1-9-2 Higashi-Shinbashi Minato-ku, Tokyo
Description of business: Planning, production and sales of image works; licensing business
Representative: Kazumi Kawashiro, President & C.E.O

General information of Vision Capital

Company name: Vision Capital Corporation
Established: September, 2000
Headquarters: 2-6-2 Marunouchi Chiyoda-ku, Tokyo
Description of business: Investment in domestic growing companies
Representative: Nobuaki Hanekura, President & C.E.O

Sincerely,

Yoshihisa Morimoto
President & C.E.O
Q-tec Inc.

Shiroharu Kawasaki
President & C.E.O
Memory-Tech Corporation

Fumio Nagase
President & C.E.O
IMAGICA Corporation

Kazumi Kawashiro
President & C.E.O
Bandai Visual Co., Ltd.