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2007.03.29
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Digital Garage Capitalizes on World's Largest WiFi Community, British FON, through Subsidiary
Aims to develops peripheral business jointly with FON Japan


Digital Garage, Inc. (JASDAQ code: 4819, headquartered in Shibuya-ku, Tokyo, Japan, CEO: Kaoru Hayashi, henceforth DG) subscribed for a portion of the new shares issued via third-party allocation by FON WIRELESS LIMITED (headquartered in London, CEO: Martin Varsavsky, henceforth FON WIRELESS), a British company operating the world's largest WiFi (wireless LAN) community, through its wholly-owned subsidiary DG Incubation Ltd. (headquartered in Shibuya-ku, Tokyo, CEO: Yasuyuki Rokuyata, henceforth DGI), which is engaged in the development of and makes investment in new ventures and strategic businesses, investing one million Euros.

DG intends to further promote the corporation with the companies of the DG group and FON JAPAN (headquartered in Meguro-ku, Tokyo, CEO: Antonio Fuentes Ayala henceforth FON JAPAN), the Japanese arm of FON and develop businesses in a variety of fields, which are made possible following the expansion of the FON community in Japan.

FON provides a service that allows registered members who buy and install the "La Fonera" WiFi router to share their wireless LAN with other FON members and third parties, which provides members with free wireless LAN access in every corner of the world.

In Japan, the number of registered members has reached 17,000 and the FON community is rapidly expanding since the start of the service in December 2006.

In regards to the partnership between the DG group and FON JAPAN, ECONTEXT, Inc. (HERCULES code: 2448, headquartered in Shibuya-ku, Tokyo, CEO: Toshiharu Satake), a subsidiary of DG and the provider of "econtext gateway 1," a total fulfillment service for E-commerce companies, will provide COD settlement services to FON JAPAN for Internet sales of "La Fonera" through the homepage.
http://www.fonshop.jp/fon_social_router_1.php


1: A total service for the uniform management of e-commerce that includes contracting, connection, operation and settlement. The billing menu offers 9 settlement methods and the logistics menu offers 2 methods of delivery, all of which reduce cost and the amount of time required for introduction.


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