August 8, 2008
Joint Establishment of Film Fund with Media Asia, a Leading Film
Production and Distribution Company Based in Hong Kong

We hereby announce that our wholly owned subsidiary, Avex Entertainment Inc.
(Location: Minato-ku, Tokyo; Representative: Masato Matsuura; hereinafter, “AEI”),
and our overseas subsidiary, Avex Asia Ltd. (Location: Hong Kong Special
Administrative Region of the People’s Republic of China; Representative: Hajime
Taniguchi; hereinafter, “AAL”), officially entered into a contract today with Oscar Joy
Limited (Location: British Virgin Islands; Representative: Peter Lam; the corporate
name is scheduled to be changed into Media Asia (MAX) Ltd.; hereinafter, “Media Asia
(MAX)”), a subsidiary of leading Hong Kong film production and distribution company
Media Asia Entertainment Group Limited. Based on this contract, we have agreed to
jointly establish a film fund that will plan and produce films targeting the Asian film
market, including China as a growing market, and invest in the fund.

In Asia, especially in East Asia including China, Hong Kong, Taiwan, South Korea and
Japan, the groundwork is being laid for acceptance of each other’s entertainment culture,
and cross-border hits are being produced in the areas of music, film, and others. Against
this background, we have positioned a “Co-produce” model that aims to create common
hits within Asia in collaboration with influential partners in various regions as the core
strategy of our International Visual Content Business, and promoted its realization. As
part of the strategy, we jointly established a film fund with top Asian movie producer,
Mr. Bill Kong, in March 2008 with the aim of nurturing new film directors. In addition,
we plan to secure a base in Hong Kong, which can be called the center of the Asian film

industry, and co-produce films expected to become hits across Asia in partnership with
the Media Asia Group, which exerts an enormous influence throughout Greater China.
1. Name of film fund
PAMIEM Film Fund Limited

2. Business of the film fund
Plans and produces films targeting East and Southeast Asia. It also aims to discover and
nurture new “talent,” artists, creators, etc. who can play an active part in Asia through
the production of films.

3. Investor/Investment ratio
Media Asia (MAX)
50.0%
AEI 40.0%
AAL 10.0%

4. Board member candidates
Peter Lam (Media Asia Entertainment Group Limited/Chairman)
John Chong (Media Asia Entertainment Group Limited/CEO)
Jenny Leung (Media Asia Entertainment Group Limited/Director)
Ryuhei Chiba (Avex Group Holdings Inc./Co-CEO)
Takashi Araki (Avex Group Holdings Inc./ COO, Senior Executive Director)
Hidemi Arasaki (AEI/ Managing Director)

5. Investment period/Total amount of the fund
During the five-year investment period from August 2008 to August 2013, we will
invest in films as needed. The upper limit of the total amount is U.S. $50,000,000
(approximately ¥5.4 billion yen). We will consider the continuation of the fund in line
with the situation at the time of expiration of the period.

6. Management of the fund
The fund’s Funding Committee will examine and select films to be capitalized and
decide the investment value. Every time a specific project (work) is launched, a
special-purpose company will be established for each project (work), and the film
production cost will be paid by Media Asia (MAX), AEI, and AAL according to their
investment ratio. From the Avex Group, Takashi Araki and Hidemi Arasaki will become
members of the Funding Committee.

Media Asia Entertainment Group Limited:
A film production company located in Hong Kong. It has produced a number of hits
across Asia, including “Initial D The Movie” (2005), “Banquet” (2006), and the
“Infernal Affairs” trilogy (2002-2003). It also focuses on selling remake rights of films
for which it owns rights to Hollywood studios (“The Departed” starring Leonard
DiCaprio, which was a remake of “Infernal Affairs” by Warner Bros., won the Oscar for
Best Picture at the 79th Academy Awards).

Contact: Avex Group Holdings Inc.
Investors & Public Relations Room
+81-3-5413-8508