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CyberAgent Announces Corporate Separation of 'All Navi', an Information Comparison Business.

Tokyo, Japan, Oct 10, 2006 - (JCN Newswire) - CyberAgent (TSE:4751), a Tokyo-based leader in Internet media markets, has announced that at the meeting of the Board of Directors held October 5, 2006, the Company made the following decision to separate the information comparison business "All Navi" from the Company and transfer its business to EC Navi Company, a consolidated subsidiary of the Company, as of December 1, 2006.

1. Purpose of Corporate Separation

Through this corporate separation, we aim for the progress of management efficiency, enhancement of business performance and further business expansion by integrating our information comparison business "All Navi" into our consolidated subsidiary EC Navi Company; operating a price comparison site.

2. Outline of Corporate Separation

1) Schedule of separation --

Approval of the Board of Directors: October 5, 2006

Conclusion of corporate separation agreement: October 5, 2006

Approval of the General Meeting of Shareholders: According to Article 784 Section 3 of the Company Law (procedures for simplified corporate separations), the Company will conduct corporate separation without obtaining the approval of the general meeting of shareholders. Further, EC Navi Company will hold a general meeting of shareholders regarding approval of the corporate separation agreement on October 20, 2006.

Date of separation (effective date): December 1, 2006

2) Separation method --

The corporate separation will be implemented through physical division method in which the Company (transferor company) will transfer the business to EC Navi Company (transferee company).

3) Allotment of shares (scheduled) --

381 shares of EC Navi Company will be issued and allotted to the Company.

4) Rights and obligations to the transferee company --

The Company will transfer assets and contract status related to the All Navi business to EC Navi Company. With regard to employees engaged in All Navi business, employment contracts will not be carried over, however, EC Navi Company will consider aforementioned employees as transfer staff.

5) Prospects for fulfillment of obligations --

The amount of assets to be divided through this corporate separation is expected to be slight compared to the total assets before the separation and the impact on income and financial status is considered to be negligible. Therefore, it is assumed that the transferee company will be able to fulfill its obligations.

3. Contents of Business Department to be Separated

1) Contents of business department to be divided --

Information comparison business "All Navi"

2) Net sales of business department to be separated --

Approximately 298 million yen (Year ending September 2005)

3) Amount of succeeding assets and liabilities (forecast for November 30, 2006) --

Total assets: Approximately 38 million yen

Total liabilities: None

4. Status of the Company after Corporate Separation

1) Company name/ business lines/ location of head office/ representative/ capital and accounting term --

No revision will be made due to this corporate separation.

2) Total assets --

Impact on total assets due to this corporate separation will be negligible.

3) Effect on business performance --

Effect on business performance due to this corporate separation will be negligible.

5. Overview of Relevant Companies (As of March 31, 2006)

1) CyberAgent, Inc. (Transferor Company)
Business lines Internet Media Business
 Internet Advertising Agency Business
 Investment and Development Business

Establishment March 18, 1998

Head office 1-12-1 Dogenzaka, Shibuya-ku,

Representative Susumu Fujita

Capital 6,686,609 thousand yen

Total shares issued 658,288 shares

Shareholders' equity 19,430 million yen

Total assets 25,186 million yen

Accounting term September 30

Employees 517 employees

Major customers Supplier:
 Yahoo Japan Corporation
 Digital Advertising Consortium Inc.

Major shareholders/ Susumu Fujita 26.05%
shareholding ratios Rakuten, Inc. 9.19%

Main banks Mizuho Bank, Ltd.
 Sumitomo Mitsui Banking Corporation

2) EC Navi Company (Transferee Company)
Business lines Online Media Business
 Planning and operation of price
 comparison site "EC Navi"

Establishment October 8, 1999

Head office 8F Shibuya First Place Bldg. 8-16
 Shinsen-cho, Shibuya-ku, Tokyo

Representative Shinsuke Usami

Capital 258,550 thousand yen

Total shares issued 20,112 shares

Shareholders' equity 1,121 million yen

Total assets 1,941 million yen

Accounting term September 30

Employees 89 employees

Major customers AD-digital, Inc.
 Digital Advertising Consortium Inc.
 SEPTENI Co., Ltd.

Major shareholders/ CyberAgent, Inc. 64.42%
shareholding ratios Shinsuke Usami 10.44%

Main banks Mizuho Bank, Ltd.
 The Bank of Tokyo-Mitsubishi UFJ, Ltd.

About CyberAgent, Inc.

CyberAgent Inc. (TSE: 4751) is a leading on-line advertising agency and media representative company. Established in 1998, and listed on the Tokyo Mothers Exchange in 2000, the CyberAgent group is committed to contributing to a new society through its work on the internet, not only in its fields of advertising and media, but through finding promising new business, and investing aggressively in developing new business. For more information, please visit

Source: CyberAgent, Inc.

CyberAgent PR/IR Group
Akiko Kashiwa
Tel: +81-3-5459-0227

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Publication:JCN Newswires
Date:Oct 11, 2006
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