March 7, 2008

Avex and Great Asian Producer, Bill Kong, to Jointly Establish Movie Fund
We hereby announce that Avex Group Holdings Inc. and its overseas subsidiary, Avex Asia Ltd. (Location: Hong Kong Special Administrative Region of the People’s Republic of China, Representative: Hajime Taniguchi), officially entered into a contract with top Asian movie producer, Bill Kong, on March 3, 2008. Under the contract, we will jointly establish a movie fund to be called, “IRRESISTIBLE FILMS L.P.,” designed to foster new film directors and put money into this fund. We have presented the establishment of joint platforms with local partners in Asia as our core strategy of Visual Content Business and are promoting its realization. As part of this aim, we will jointly establish this fund with Mr. Bill Kong. This will allow us to establish a strong connection with Asia’s talented new film directors and creators ahead of other companies. In addition, we are going to absorb Mr. Bill Kong’s know-how in the movie business by sending our employees to work with the joint fund. 1.

Purpose of the fund
The purpose of the fund is to discover and foster new film directors. The fund will provide talented new directors with opportunities to make films and secure their debut as film directors, and a library of these new directors’ debut films will also be established.
2.

Operator of the fund
IRRESISTIBLE FILMS MANAGEMENT LTD. (Location: Hong Kong Special Administrative Region of the People’s Republic of China, Representative: Bill Kong)
3.

Capital investors in the fund
SILK SCREEN PARTNERS LTD.

50.7%
Avex Group Holdings Inc.
39.4%
Avex Asia Ltd.
9.9%
* SILK SCREEN PARTNERS LTD. is a company that was established by Mr. Bill Kong and Mr. Hugh Simon who have joint charge in operating the fund.

4.

The fund’s total amount (at the time of establishment)/operation period
16,750,000 US dollars (approximately 1,782 million yen)/10 years

5.

The number of films to be produced
At least 20 films during the period
Profile of Mr. Bill Kong: Bill Kong is a film producer and the representative of Edko Film, an independent film distribution company in Hong Kong. He has produced a large number of films that became major hits, not only in Asia but also in Japan, Europe, and the United States. Main works “Crouching Tiger, Hidden Dragon,” “HERO,” “House of Flying Daggers,” “Windstruck,” “Fearless,” “Curse of the Golden Flower,” and “Lust, Caution” Contact: Avex Group Holdings Inc.
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