June 4, 2012

Company name: Oak Capital Corporation Name of Representative: Hiroyasu Takei Representative Director, Chairman and CEO Securities Code Number: 3113 Market of Public Listing: Second Section of the Tokyo Stock Exchange Contact Person: Koji Kirimura

General Manager, Public & Investor Relations Dept. (irinfo2@oakcapital.jp)

Announcement of Launch of “Electronic Letter Business Project” – the Second Project Classified under “Specified Business Project Investments”

We are pleased to announce the launch of the second project that is part of our “Specified Business Project Investments” initiative. As with the first “Digital Postal Business Project,” this new “Electronic Letter Business Project” belongs to the field of mobile communications.

Electronic letters utilize the same infrastructure as e-mail communication and denote messages sent to the recipient in the format of a postcard. An outline of this new project is as follows.

1. Definition and outline of “Electronic Letter Business”

Electronic letters differ from regular e-mail that only transmit sentences (as text data) in that they use designer templates resembling real postcards. They are sent directly and in real time as graphical content and can be viewed on the recipient’s PC or smartphone screen. This system is already in widespread use in the U.S. and Europe where electronic letters are commonly known as “mobile e-cards” or “m-cards”. By using the graphical content of a letter (such as postcard, picture card, original design card, etc.), electronic letters manage to leave a more thoughtful, original or courteous impression compared to an ordinary e-mail message. As such, they are expected to be used instead of real greeting cards such as season's greetings cards, birthday cards, Christmas and other greetings.

The present business targets users of e-mail who annually send some 200 billion messages in total. It will provide a high-quality visual communications platform developed for wide-screen smartphones (mobile phones with advanced functions) and feature a wealth of “designer templates” content that allow for more personalized modes of expression compared to normal e-mail and will thereby make the users’ communication experience even more enjoyable. The “Electronic Letter Business” plans to charge a monthly usage fee of 200 yen and expects to count some 2 million users a year.

•Digital post supporting the enrichment of communication

•Software using templates and images designed to make the e-mail experience more enjoyable

2. Digital Post as the only provider of hybrid mail services

The hybrid mail services, which Digital Post first launched as part of its digital postal business, enable users to conveniently send by snail mail real letters and DM straight from their smartphones or PCs. Senders simply use a “LiveCard” template for the creation of a personalized letter or postcard and once they hit the send button, Digital Post’s data processing center will produce a color-printed version on high-quality paper and mail the card or letter to the intended recipient(s). Users of these hybrid mail services are thus spared the trouble of having to print out cards or letters and visit the post office and can send them in the mail to their recipients at anytime from anywhere with the same ease as an e-mail.

These services can be easily accessed by all iPhone and Android-based smartphone models marketed by Softbank Mobile Corp, KDDI Corp and NTT DoCoMo Inc. by simply downloading the free application software (application named MyLetter) available on markets offering applications designed for smartphones.

* Name of each hybrid mail service and URL of the respective service sites:

For individual users: “LiveCard” ( http://www.livecard.jp/ )

For corporate customers: “LiveCard DM” (http://biz.livecard.jp/ )

Usage fee: For each service, the fee is 120 yen per postcard and 200 yen per card in sealed envelope

3. Enhanced convenience through the combined use of electronic letters and hybrid mail

Depending on the intended recipient, users can now creatively use two services, namely one for “sending a virtual electronic letter” and the other for “sending a real letter through snail mail”. To further enhance the mobile communication experience, a wealth of templates has been made available enabling users to choose from among 130 templates per season as well as from among 50 different kinds of digital stamps.

4. Timing of the launch

The launch of the new “Electronic Letter” service is planned for August 2012. More information will be made available in due course.

5. Outline of companies participating in the Digital Post Business Project

This project was commercialized through Oak Capital’s planning and the joint undertaking by investment-recipient companies Flight System Consulting, Inc. (TSE Mother 3753), Softfront, Inc. (JASDAQ 2321) and Tokyo Lithmatic Corporation (JASDAQ 7861) as well as by Japan’s leading information business company Hitachi Systems, Ltd. The Digital Post Co., Ltd. was established through joint capital participation and has been providing digital postal services since December 2011.

In addition to these companies, the project counts on the participation by investee I-FREEK INC. (JASDAQ 3845) in charge of supplying creative subject matter and other contents.

6. Outline of Oak Capital’s “Specified Business Project Investments”

Since 2010, Oak Capital has been conducting investments supporting the growth of listed start-ups and

small and medium-sized companies. A spate of changes lately in the economic environment, however,

have brought to the fore increasingly monumental challenges that are of the same critical nature as

financing and affecting corporate management strategies, namely business revitalization and the creation of new business models.

Oak Capital prides itself on multifaceted support activities turning its investment banking strengths to

good advantage and addressing such managerial issues as corporate network building and new business

creation. In addition and in the same vein, Oak Capital proposes business creation projects meeting the

needs of midsize listed companies while also promoting “Specified Business Project Investments” by way of providing the necessary business finance.

Contents of support provided through the “Specified Business Project Investments:

(1) Planning of new businesses utilizing the competitive edge corporations

(2) Planning of businesses that leverage areas of expertise by a number of corporations

(3) Supporting the formation of synergistic businesses between target companies and leading corporations in their respective markets

(4) Supporting the procurement of funds for the implementation of specified business projects

7. Areas covered by “Specified Business Projects Investments”

“Specified Business Project Investments” were started in 2011 and have so far focused on

smartphone-related “digital postal business” to which the present “electronic letter business” project has

now been added. During this fiscal year, more areas are to be added such as the wide-ranging information technology industry, healthcare and other, attractive areas in the communications industry.

8. Impact on Operating Performance

The effects of the Electronic Letter Business on earnings are not known as of this date. As soon as any effects are apparent, notification thereof shall be made.

Oak Capital’s earnings of the first quarter were produced mainly by the results of our specified business

project investments. We will continue to push ahead with the implementation of specified business project investments in new areas.

(For complete announcement in Japanese, click here)