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DIGITAL Hearts Co.,

Ltd.

President and CEO Eiichi MiyazawaJuly 9th, 2008

「Evolve from Made in Japan

to Checked by Japan」

Copyright (C) 2008 DIGITAL Hearts CO,LTD All Rights Reserved.

Index

1

Part-2 Financial Highlights(March, 2008)

Part-3 Future Growing Strategy

Part-1

Company Outline

Part-1

Company Outline

Copyright (C) 2008 DIGITAL Hearts CO,LTD All Rights Reserved. 3

Company Name

DIGITAL Hearts Co., Ltd.

Representative

President and CEO Eiichi Miyazawa

Headquarters Address

3F Sasazuka South Bldg, 1-64-8 Sasazuka

Shibuya-ku, Tokyo, 151-0073 Japan

Business Field

Comprehensive QA Testing and Reporting of Package Software, Mobile Applications and Firmware.

Achievements

Annual Turnover：

2billion372million yen （FY 2007）

Ordinary Profit ：

319million yen （FY 2007）

Capital

：

272million yen （as of May 20th

, 2008）

1 Company Outline/History

Year/Month History

2001 Apr. Corporation DIGITAL Hearts was founded in Suginami-ku, Tokyo and QA Testing Service started

Oct. Headquarter was moved to 2 Chome, Sasazuka, Shibuya-ku, Tokyo

2002 Sep. General Worker Dispatch Business Permission Granted

2003 Oct. Organization Changed to DIGITAL Hearts Co., Ltd.

2004 Aug. Number of Business Clients exceeded over 100 companies

200

5

Jan. Headquarter was moved to 1 Chome, Sasazuka, Shibuya-ku,Tokyo

Apr. Osaka Branch Office was opened in Osaka

Aug. Nagoya Branch Office was opened in Nagoya

Number of Business Clients exceeded over 200 companies

2006 Mar. Capital increased to 41million yen

Jun. Akihabara Branch Office was opened in Chiyoda-ku, Tokyo

Nov. Shibuya Branch Office was opened in Shibuya-ku, Tokyo

2007 Jul. Yokohama Branch Office was opened in Yokohama

Sep. 1st

Japanese Company to obtain Recommended Test Vendor authorization for Xbox

360Ⓡ

by Microsoft （AXTP）

Oct. Obtained Privacy Mark Permit Number: A822640（01）

2008 Feb. Registered in Mothers Tokyo Stock Exchange （Code：3620）

May Sapporo Branch Office was opened in Sapporo, Hokkaido


Client(Industry)

Various request ofSoftware QA

testing

Consumer Videogame

Mobile Contents

Pachinko,Pachi-Slot

Home Electronics

Others

Final QA Testing and Bug Reporting

Each Industry Know-How to be Utilized Widely

Proposal of QA Testing Pattern

２

Our Business Model

Inspection/Final QA Testing Know-How (DB)

Accumulated

Consumer Videogame Software

Cellular Phone ContentsPachinko/Pachinko-Slot

Skill Development

Training

Employment

Training/ Guideline

Our employees subject to Social Security and registeredstaff)

Execution of Active Final QA Testing by having self developed methodology through End Users Point of View


Major Software Company

Planning

Design Specification

Main Program

Merging Data

αver. / TestDIGITAL Hearts

βver. / Test

After βCorrectionComplete Master Ver.

Active（≠Passive）

QA Testing Service

End-Users

Target：

Videogame Software for the Consumer

Videogame Platform

Client：

Videogame Publisher, Game Software Developer

Others：

Business Application Software, EC Sight,

Consumer Digital Home Electronics Software

Target：

Application Software for Major Cellular Phone Carrier

Software built in the Cellular Phone

Client：

Contents Provider, Cellular Phone Developer

Target：

Pachinko, Pachi-Slot

Client：

Pachinko, Pachi-Slot Manufacturer

Developing Company

Individual TestingMatching Test

３

Our Business and the Field

QA Testing Service

Our Business Our Business Fields

Consumer Videogame Relations Business

Mobile Contents Relations Business

Amusement Equipment Relations Business


①

Accumulation of Experience & Knowledge

②

Ease of Access to Talented QA Testers

③

Maintain the Highest Security System Level

４

Our Characteristics and Strong Points


DATA Base

Stability of Customer Base with High Profile ClientIntensive QA TestingFull of Self Developed Training ProgramsVersatile knowledge transfer fromConsumer Videogame to other Industry

220K items (as of Mar.2008/122% vs 2007)of own Bug Information

DATA Base is accumulated at our “Debug Studio” and

increasing everyday.

QA Testing Experience in the industry where

the software development flexibility

is high such as Consumer Videogame

Analysis

①-1 Experience and Knowledge


310

398Approx.

1.2X

Increasing the Number of Customer Bases

398 Companies of Customer Bases as of end of March, 2008. （128% vs March, 2007 and 244 Companies

from the Consumer Videogame）

398 Companies of Customer Bases as of end of March, 2008. （128% vs March, 2007 and 244 Companies

from the Consumer Videogame）

07.03 08.03



Gain Customer

Confidence

Gain Customer

Confidence

Actual Bug DATA Base

leads us to efficiently detect the bug.

In House QA TestingBug Bug

Bug

Bug

Bug

Bug

Bug

Bug

Bug

Bug

BugBug

Bug

Become

Regular Customer

Become

Regular Customer

AdditionalKnowledge Base

Intensive and Thorough QA Testing Service



STEP1 STEP2 STEP3 STEP4

New Face TrainingNew Face Training

Operation SystemTerminology/Equipment KnowledgeNDABusiness Manners

Operation SystemTerminology/Equipment KnowledgeNDABusiness Manners

Basic TrainingBasic Training

QA Testing BasicHardware KnowledgeReportingSubcontracting/Dispatching Manner

QA Testing BasicHardware KnowledgeReportingSubcontracting/Dispatching Manner

Intermediate TrainingIntermediate Training Advanced TrainingAdvanced Training

Offer Step by Step Training Opportunity “from Business Manners to Advanced Level skills”

<<<<<

Developing the Professional Tester >>>>>

Pro

gra

m

・ＣＥＲＯ

Text Glossary

・ＣＥＲＯ

Manual ＨＤＤ

Ver.

・ＣＥＲＯ

Operation Guide

・QA Testing Glossary

・QA Testing Intermediate

・Objective Word Glossary

・DS Lot Check

・Ｗｉ-Ｆｉ

Communication

・ＷＭＴＴｅｓｔ

Ｔｏｏｌ

・Communication Error

・Screen Splitter

・QA Test Follow up Sheet

・Ｗｉｉ

Information

・Ｗｉｉ

Operation Flow

・ＴＲＣ

Inspection List

・Compliance Guide

・ＰＳＰ/ＰＳ３

Information

・ＰＳ３

Operation Flow

・Pre Certification Check

・ＢＲＥＷ

Basic Check List

・Application Test Basic Check list

・Sight QA Test Basic Check List

・”HOTSUUKYO” Related Manual

・Pachinko-Slot Knowledge Manual

・Pachinko-Slot Equipment Knowledge

Training Manual/Tool Example (partial)Training Manual/Tool Example (partial)

QA Test Spec. Bug Report AnalysisTotal Hardware KnowledgeSystem KnowledgeLeader Skill

QA Test Spec. Bug Report AnalysisTotal Hardware KnowledgeSystem KnowledgeLeader Skill

Title ImplementationConfiguration of programSpecial SpecificationSpec Knowledge by Carrier

Title ImplementationConfiguration of programSpecial SpecificationSpec Knowledge by Carrier

Management LeaderManagement Leader

Expert LeaderExpert Leader

②-1 Ease of Access to Talented Testers

Full of training programs we developed


The best “User of the Product” is the best “Hunter of the Product Bugs”

Offering the variety of the employment style to meet versatile sense of values

By offering the well planned “Training Curriculum” and execution can make program

steady to level up

Assurance to get the ready enoughfighting power Registered staff: 2,375 persons(as of Mar. 2008/239% of the Mar. 2007)

Assurance to get the ready enoughfighting power Registered staff: 2,375 persons(as of Mar. 2008/239% of the Mar. 2007)

Flexibility to assign by own system to meet clients work volumes, types and titles.

Flexibility to assign by own system to meet clients work volumes, types and titles.

“Fond of Videogame”

Youth

who are gadgeteers of the digital products

Our ConceptOur Concept

From “Fond of Videogame” to “Fond of QA Testing”From “Fond of Videogame” to “Fond of QA Testing”

②-2 Ease of Access to Talented People

Number of Registration

9931,151

1,375

1,797

2,375

800

1,000

1,200

1,400

1,600

1,800

2,000

2,200

2,400

2,600

2007/03 2007/05 2007/07 2007/09 2008/03


No unauthorized person is permitted to enter the facility and maintain high security level. In and out of QA Test Room is secured by implementing Fingerprint Authentication System.

No unauthorized person is permitted to enter the facility and maintain high security level. In and out of QA Test Room is secured by implementing Fingerprint Authentication System.

Prevention of security information leakage/fire by CCTV Camera system and Security Service rendered for 24hrs. Immediate action taken from the beginning of the problem for surveillance and warning.

Prevention of security information leakage/fire by CCTV Camera system and Security Service rendered for 24hrs. Immediate action taken from the beginning of the problem for surveillance and warning.

Every Title work we receive is under development and all the information is subject to Security. Security information and Media are abolished by Security specialized Company.

Every Title work we receive is under development and all the information is subject to Security. Security information and Media are abolished by Security specialized Company.

All the media we receive from clients is stored in the safe. Only responsible person is authorized to manage the safe. Also, destructive action is monitored by the online network.

All the media we receive from clients is stored in the safe. Only responsible person is authorized to manage the safe. Also, destructive action is monitored by the online network.

① In & Out Control by Fingerprint Authentication System

① In & Out Control by Fingerprint Authentication System

②監視カメラによる防犯監視②監視カメラによる防犯監視

③ Demolishing SecurityDocuments by SecuritySpecialized Company

③ Demolishing SecurityDocuments by SecuritySpecialized Company

④ Installation of Safe inthe Secured Room

④ Installation of Safe inthe Secured Room

写真１写真２写真３写真４

High Security System to Satisfy the Severe Client Requests of the Security Level

③

Maintain the Highest Security Level

② Crime Prevention byCCTV Camera System

② Crime Prevention byCCTV Camera System

Part-2 Statement of Accounts (Fiscal Year Ended March, 2008)


Statement of Accounts (March, 2008)

14

Net Sales, Operating Income, Ordinary Income and Net Income are above forecast unit：¥

millions

2007/3 2008/3Plan 2008/3 vs ’08/3 (+/-) vs ’08/3 （％）

Net Sales 1,499 2,228 2,372 873 158.2

Operating Income 229 296 336 107 146.1

Ordinary Income 229 278 319 90 139.1

Net Income 136 166 169 33 124.2

06.03 07.03 08.03

921

921

1499

2372

0

500

1,000

1,500

2,000

2,500

06.3 07.3 08.3

Net Sales Transition

Net Sales

（¥

millions）

108

229

319

77

136169

0

50

100

150

200

250

300

350

06.3 07.3 08.3

Ordinary Income,Net Income Transition

Ordinary IncomeNet Income

（¥

million）


Achievement Transition

319 320542

768

1529

10 76

205

425

414

73132

174

305

427

0

500

1,000

1,500

2,000

2,500

04.3 05.3 06.3 07.3 08.3

Net Income Transition

Amusement Equipment

Mobile Contents

Consumer Videogame

16

36

108

229

319

13 19

77

136

169

4.1

6.8

11.8

15.3

13.4

0

5

10

15

20

25

30

0

50

100

150

200

250

300

350

04.3 05.3 06.3 07.3 08.3

Ordinary Income,Net Incomeand Ordinary Income/ Net Sales Ratio Transition

Ordinary Income

Net Income

Ordinary Income/Net Sales Ratio

（¥

million）（¥

million）（％）


Quarterly Achievement Transition (March, 2008)

16

1Q 2Q 3Q 4Q

Net Sales 416 558 733 663

Ordinary Income 29 70 154 65

unit：¥

millions

（¥

million）


Penetrating the Outsourcing for Consumer Videogame QA Testing

2007/3 2008/3 vs prior year(+/-) vs prior year（％）

No. of Titles Sold 1,316 1,316※ ーー

No. of Titles Ordered at DH

172 321 149 186.6

Order Receiving Ratio

13.0 24.3 11.3 186.6

17

vs prior year 186.6％

24.3％13.0％

07.03 08.03

172

321

050

100150200250300350

07.3 08.3

No. of Titles Order Received

No. of Titles Order Received 100

50

0

24.3

(％)

13.0

（¥

million）

Order Received Ratio

※Number of Titles Sold as of 2008/3 is under research. Applied the same number as the previous year for estimation.

・

Information Source for the Number of Game Titles：FAMITSU GAME HAKUSYO 2007・

Number of Titles Sold is calculated by subtracting the None Subjective (such as leader layer etc) from total sales.

unit：¥

millions

In house & others

DIGITAL Hearts

In house & others

DIGITAL Hearts


Key Notes of the Statement of Accounts (FY 2008.3)

18

unit：¥

millions

2007/3 2008/3Plan 2008/3 vs prior year vs prior year （％）

Net Sales 1,499 2,228 2,372 873 158.2


Ordinary Income 229 278 319 90 139.1

Net Income 136 166 169 33 124.2

Penetration of the QA Test Outsourcing

Sales Expansion by the Healthy Consumer Videogame Market Place Growth

Increase Name Value & Gain Client Confidence by Mothers Tokyo Stock Exchange Registration


2006/3 2007/3 2008/3 vs 07/3 vs 07/3（％）

Consumer Videogame

542 768 1,529 761 199.1

Mobile Contents 205 425 414 （11） 97.3

Amusement Equipment

174 305 427 122 140.2

19

07.0308.03

unit：¥

millions

Consumer Videogame６５％

Consumer Videogame５１％

Mobile Contents２９％

Mobile Contents１７％

Amusement２0％

Amusement１８％２０％

２９％

５１％６５

％

１８

％

１７

％

Sales Achievement by Business Category

Part-3 Future Growing Strategy


Aiming for FY2008

①. Strengthen the Main QA Testing Business

②. Expand Collateral QA Testing Services

③. Develop and Expand the Overseas Business

④. Strengthen and Expand the Business Field

⑤. Establish the Nation Wide Business Network

⑥. Increase Name Value and Client Confidence


Implement the Client Manager System

CurrentClient

NewClient

Sales

Deve

lop

Coord

inat

e

Client Manager（１５staff）

Sales（12staff）

NewClient

CurrentClient

Deve

lop

Coord

inat

e

FY2007 April 1st

～

Sales to cover both Current and

New Clients

Sales to be dedicated to develop New Client and Client Manager can strengthen the

business relationship with Current Client!

Follow up

①

Strengthen Main QA Testing Business


②-1 Expand Collateral QA Testing Services

08.04

On Line Game Soak Testing Service

Started as Collateral Service

08.04

Compliance Check Service Started

for Xbox 360

Ⓡ Videogame Software

08.05

24 hours Websites Check Service

Started.

08.06

BREW®

PRE-CHECK Service Started.

08.06

Pachi-Slot’s Selector/Hopper Check Service started.


②-2 Expand Collateral QA Testing Services

08.07

Portal Website of Product Quality Information, “fuguai.com”, launched.


08.03

Japanese/English Translation Services

for Bug Report Started

08.04

Japanese/English Translation Services

Started for Videogame Related Documents.

08.04

Organized Overseas Business Department

08.04

English Website Opened

③ Develop and Expand Overseas Business


Apply Cumulated Technology

to the Electronics Field

Consumer Videogame QA Testing Technology

Pachinko/Pachi-Slot QA Testing Technology

Mobile Phone Contents QA Testing Technology

Apply

④ Strengthen and Expand Business Field

Enhancement Expansion

Electronics Field

Digital Home ElectronicsCar Navigation

etc.

“Current Sales under Consumer Videogame”


07.07

Yokohama Branch Office Opened

08.05

Sapporo Branch Office Opened

Current 5 Branch Offices

⑤-1 Establish the Nation Wide Business Network

08.05

Nagoya Branch Office will move to a new location and expand the floor space


Sapporo

Tohoku

Region

Sasazuka

Shibuya Akihabara

Yokohama

Yokohama-2

Kyusyu

Region

Nagoya Osaka

Okinawa



Hiring Cost TransitionBefore/After of Tokyo Mothers Stock Exchange Listing

¥0

¥5,000

¥10,000

¥15,000

¥20,000

¥25,000

¥30,000

¥35,000

07/06 07/07 07/08 07/09 07/10 07/11 07/12 08/01 08/02 08/03 08/04

Before After

Head Office

＋Yokohama

Sapporo Office

¥1,050

Ease of access to recruit talented people


176 Applications Received during 6 Day Recruiting* Actual Result of Sapporo Office in April


Increase Name Value by Mothers Tokyo Stock Exchange Registration

Gain Client Confidence

ResultsResults

Name Value

Confidence

⑥ Increase Name Value & Client Confidence


Sales Electronics

Amusement Equipment Relation Business

Mobile Relation Business

Consumer Videogame Relation Business

Image of the Future Growth

Establish Natio

n Wide Netw

ork

海外への展開

Expansion of Service

Enhance & Expand Business Field

Gain Name Value & Confidence

Develop Overseas Business


FY2008 Business Forecast

2007/3 2008/3 2009/3Plan vs ’08/3 vs ’08/3（％）

Net Sales 1,499 2,372 3,100 728 130.7


Ordinary Income 229 319 473 154 148.2

Net Income 136 169 250 81 147.6

32

unit：¥

millions

528921

1499

2372

3100

0

500

1,000

1,500

2,000

2,500

3,000

3,500

05.3 06.3 07.3 08.3 09.3

Net Sales

Net Sales

Plan

1378

2009/half year Plan

（¥

million）

36

108

229

319

473

1977

136169

250

050

100150200250300350400450500

05.3 06.3 07.3 08.3 09.3

Ordinary Income,Net Income TransitionOrdinary Income

Net Income

Plan

128

67

2009/half year Plan

（¥

million）


FY2008 Ordinary Income Point

2007/3 2008/3 2009/3Plan

Net Sales 1,499 2,372 3,100

Ordinary Income 229 319 473


15.3 13.4 15.2

39%up 48%up

（百万円）（％）

229

319

473

39%up

48%up

0 5 10 15 20 25 30 35 40 45 50 55

0

50

100

150

200

250

300

350

400

450

500

07.3 08.3 09.3Plan

Ordinary Income Growth Ratio Transition

Ordinary Income

Ordinary Income Growth Ratio Transition

（¥

million）（％）

229319

473

15.3% 13.4% 15.2%

0

5

10

15

20

25

30

0

50

100

150

200

250

300

350

400

450

500

07.3 08.3 09.3Plan

Ordinary Income/ Net Sales Ratio TransitionOrdinary Income


（％）（¥

million）


Sales Forecast by Business Category

34

unit：¥

millions

08.03

Consumer Videogame６５％

Mobile Contents１７％

Amusement１８％

１８％

１７％６５％

09.03

Consumer Videogame６３％

Mobile Contents1８％

Amusement１９％

６３％１８％

１９％

2008/3 2009/3Plan vs ’08/3 vs ’08/3 （％）

Consumer Videogame

1,529 1,941 412 126.9

Mobile Contents 414 571 157 137.7

Amusement Equipment

427 587 160 137.2


Gain Confidence & Get Results by “Proactive Practice and Action”

Maximize one’s Ability

Seek for the Superior Level of Quality at all times

Continue challenging oneself to change for the better

Confront the obstacle in accordance with one’s beliefs

Without the vanity, give your best with passion

“Bringing up shining talented individuals” full of human nature

Endeavour to achieve 100% Market Share with “Never Lose Spirit”

Put the Merit System above all

Management PhilosophyManagement Philosophy

Management VisionManagement Vision

Management Philosophy and Vision

「Evolve from Made in Japan

to Checked by Japan」


Thank you very much for your attention!

36

This document is presented for the purpose of the activity which

concerns the Investor Relations and is not intended

to induce investment activities. While our company takes great care over the information that it posts on this

document, it provides no warranty concerning the accuracy, reliability, or completeness of this information.

Projections posted on this document concerning future financial data or business activities are based on the

information available to our company at the present time. Since such projections do represent some risk and

uncertainty, please be aware that a variety of factors may operate to produce final results that vary greatly from

these projections.

Copyright works on this document are protected by the Copyright Law. The reproduction, modification, translation,

distribution, performance, or exhibition of such works without permission is prohibited.

ＩＲ

Contact:

Dept.：

Corporate Planning Department

Name：

Akiyoshi

Yamazaki

TEL：

+81-3-3379-2053（General）

TEL：

+81-3-3379-2219(Direct)

E-mail：

ｉｒ@digitalhearts.com