TOKYO, Japan - November 2, 2011 - GREE today announced that it has resolved to make MARS a wholly-owned subsidiary.

1. Reason for acquisition

Currently focusing on the development and operation of social games in order to grow its social networking service (SNS) “GREE” into a global platform, GREE will make MARS into a wholly-owned subsidiary in order to strengthen its development capability for smartphone apps and enhance its line-up of attractive social games.

MARS possesses abundant development experience in smartphone apps through its subsidiary, FEYNMAN, and operates a popular app, “Kawaii Pet MEGU (Breeding game MEGU),” which recently recorded a cumulative number 807,000 downloads (as of October 28, 2011).

By turning MARS and FEYNMAN into wholly-owned subsidiaries, GREE expects to reinforce its development capability for smartphone apps and to create synergy among the three companies by sharing human resources and operational know-how. Moreover, GREE forecasts higher profitability by using GREE's know-how in “Kawaii Pet MEGU (Breeding game MEGU).”

GREE continues to provide high quality content to as many users as possible and aims to provide the best community services to be used all over the world.

Screenshots of “Kawaii Pet MEGU (Breeding game MEGU)”

2. Investment scheme

GREE will initially acquire 5,110 common shares of MARS (voting right ratio: 70.0%) from existing shareholders. GREE will then purchase the remaining 2,190 common shares of MARS (voting right ratio: 30.0%), from existing shareholders in several stages, resulting in GREE acquiring 100% of all shares of MARS.

3. Outline of MARS

Company name MARS, ltd.
Representative Kenichi Yao
Address Shibuya-ku, Tokyo
Establishment January 1996
Number of employees 28
Major shareholder Kenichi Yao (Ownership ratio: 76.3%)
Description of main business Contract development of smartphone applications and websites
Capital 10 million yen (As of the end of September 2011)
Relationship between listed companies and MARS Capital relationship:No capital relationship to be noted.
Personal relationship:No personal relationship to be noted.
Business relationship:No business relationship to be noted.

Reference

Company name FEYNMAN Co., Ltd.
Representative Kenichi Yao
Address Shibuya-ku, Tokyo
Establishment July 2008
Number of employees 5
Major shareholder MARS, ltd. (Ownership ratio 100.0%)
Description of main business Development of smartphone applications
Capital 5 million yen (As of the end of September 2011)
Relationship between listed companies and FEYNMAN Capital relationship:No capital relationship to be noted.
Personal relationship:No personal relationship to be noted.
Business relationship:No business relationship to be noted.

4. Schedule

Acquisition of shares: November 2011 (tentative)

The effects of this announcement on our performance are under review and we will immediately disclose any major effects if identified.

GREE and the GREE logo are registered trademarks of GREE, Inc. in Japan. All other trademarks are the property of their respective owners.

Contact Information

Press Contacts
GREE, Inc. PR
Roppongi Hills Mori Tower, 6-10-1 Roppongi, Minato-ku, Tokyo, Japan
E-mail: pr@gree.co.jp
URL: http://corp.gree.net/jp/en/
Twitter: @GREE_pr_jp