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The Bandai Namco Group conducts its business in a wide range of fields in entertainment markets around the world. These markets, however, are constantly exposed to dramatic change and intense competition, and the Group expects its operating environment and the preferences of customers to change at an accelerating pace. Accordingly, the Bandai Namco Group has started the Restart Plan in 2010. The objectives of this plan are to enhance the Group's ability to respond to change with speed and flexibility as well as to improve profitability and strengthen financial standing. To that end, we will implement reforms targeting the realization of optimal organizations and systems. For example, among the four Strategic Business Units (SBUs), we will combine the Game Contents SBU and the Visual and Music Content SBU, both of which handle content. The new Content SBU will move from a traditional vertically managed organization centered on platforms and other outlets for content to an organizational structure that functions along a horizontal axis. In this way, we will strive to maximize the value of our content. As a result, we now have a three SBU system, with the Toys and Hobby SBU focusing on the production of toys and other products, the Content SBU handling operations from content creation to delivery, and the Amusement Facility SBU serving as a key point of customer contact.

Our ultimate focus will be on the creation and provision of entertainment that draws on Bandai Namco's unique strengths. In these ways, we will work to create an environment that supports the provision of hit products and services. The market presence of the Bandai Namco Group is based on the provision of 'Dreams, Fun and Inspiration' to people around the world through entertainment. In this way, we are striving to realize our vision of being a 'Globally Recognized Entertainment Group.' To reinforce its presence in the years ahead, the Bandai Namco Group will strengthen its overseas business, execute innovative content strategies, and expand its operational scale to better compete in markets around the world. To succeed in taking on these challenges, we must implement a number of measures to bolster our foundation and work together to achieve global expansion over the medium to long term by striving for further business growth based on this foundation.

Shukuo Ishikawa
President and CEO, Representative Director
April 2010