World's First Interactive Japanese Manga Web Service Creates Community of ''Reader-Translators''

Manganovel Corporation and Toshiba Corporation today announced
that they will bring the universe of Japanese manga to the global
market with the launch of "Manganovel," an on-line service that allows
readers not only to download and read manga in Japanese but to post
and offer for sale their own translations of content. The service
started beta testing in June this year, and is now officially ready to
take manga characters to anime lovers around the world. The site can
be accessed at: URL: https://www.manganovel.com .

"Manganovel" will serve as a distribution source for Japanese
publishers, and go beyond that to create a community of readers. In a
world-first for the comics industry, members will not only be able to
download and read Japanese versions of manga, but, by making full use
of the potential offered by Web 2.0, be free to upload and even sell
their own translations of the comics. Potential readers can get advice
on the quality of any individual translation offered on "Manganovel"
by reading the comments of other readers on the site's discussion
boards. The whole operation will offer secure digital rights
management with "MQbic" (Multi-cubic), digital copyright protection
technology developed by Toshiba.

"Manganovel" will serve the Japanese market with a Japanese site
for downloads, and the global market with an English site where
readers can download Japanese manga and translations by
"reader-translators." This novel approach will give readers in
overseas markets early access to new manga titles at a price similar
to that paid by readers in Japan, while supporting a community of
"reader-translators" offering access to the texts in English. Comic
lovers anywhere in the world will be able to register for and use
"Manganovel's" services, and make on-line payments by credit card.

"Manganovel" is already attracting attention and support from
manga publishers who recognize its potential power as a marketing
tool. Shonengahosha, one of Japan's leading publishing houses, will
initially offer titles on "Manganovel," for both download and
translation.

"Manganovel's" operating security will be guaranteed by "MQbic"
(Multi-cubic), Toshiba's proprietary digital copyright and rights
management and protection technology (DRM: digital rights management).
The site's operations will be enhanced by the application of a "server
thin client model" developed by Toshiba in collaboration with the
Simplicity consortium at the Massachusetts Institute of Technology's
(MIT) Media Lab. In the future, this system will allow members to view
the comics they purchase not only on a PC but also on a mobile phone
or portable game player.

The "Manganovel" concept was developed by Toshiba in collaboration
with Professor John Maeda, a world-renowned graphic designer, visual
artist and computer scientist, and with researchers in the Media Lab's
Simplicity consortium, and the related application and server software
was implemented by Fixstars Corporation, which also has a minority
holding in "Manganovel."

The Simplicity consortium specializes in fusing design, business
models and technology. Its "server thin client model," as used by
"Manganovel," does not require users to save content at their end; all
content is managed by "Manganovel's" distribution server. Users can
access the service from any PC, and in future they will be able to
read purchased comics on multiple platforms, including mobile phones
and portable game players.

Manganovel will continue to work with Professor Maeda to develop a
platform even more convenient than a comic; an interface combining
usability, usefulness and enjoyability. Also, "Manganovel" will be
used at MIT in Professor Ian Condry's course on "Japanese Literature
and Cinema," to help students study Japanese pop culture and comics.

The "Manganovel" Concept

1. Members buy Japanese version of comics for $4 to $5.

2. "Reader-translators" translate the comic to other languages.

3. The "reader translator" e-mails the "translation" to
"Manganovel" and can price it at either free or 2 percent of the
original comic price.

4. Readers can purchase the original Japanese comic and the
translation data.

5. If a translation is purchased, the "reader-translator" gets 50%
of the sale price as a royalty.

6. Readers who purchase translations can review them on
"Manganovel's" discussion board, and use reviews to select a
translation of a comic from among multiple translations. The original
"reader-translator" can also use the feedback from discussions to
revise the text and try to improve it.

Background

Comics are more popular than ever, and interest in Japanese manga
is soaring. International sales in 2005 (excluding Japan) stood at
$245 million (approximately Yen 29 billion), a more than three-fold
increase over 2001's $75 million, and manga accounted for over 60
percent of the market, generating sales of $145 million (approximately
Yen 17 billion).(a) This is despite the fact that only a few titles
are released in the overseas market, where sales are undercut by
delays in getting titles to market--a month's delay is typical for
paperbacks--and relatively high prices. "Manganovel" will end these
problems and meet pent-up demand for an instant, low-cost service for
manga. With cooperation from major comic publishers, "Manganovel" will
make Japanese comics globally available and create an innovative mode
of translation supported and driven by lovers of manga.

(a)ICv2 White Paper -- Graphic Novel Growth and Diversification by
ICv2's Milton Griepp's

Outline of Manganovel Corporation

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Company name: Manganovel Corporation
Date of establishment: June 27, 2006
Representative director: Yoichi Ibi
Capital: 45 million yen
Shareholders and holdings: Toshiba Corporation: 89%;
Fixstars Corporation: 11%;
Address: Nisshin Building 3F, 1-8-27 Kounan,
Minato Ward, Tokyo
Business activities: On-line distribution of Japanese comics
to the Japanese and overseas markets
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