Press Release

For Immediate Release

HI CORPORATION opens Regional Subsidiary in Singapore
Mascot Capsule Singapore to be launch pad for China and Asia

Nov. 7, 2002 (Tokyo, Japan)-Mobile 3D rendering technology pioneer HI CORPORATION (head office: Meguro-ku, Tokyo; President & CEO: Kazuo Kawabata; paid-in capital: 139.25 million yen; http://www.hicorp.co.jp) officially began operations today of its Singapore local operating company Mascot Capsule Singapore Pte. Ltd. The office will undertake R&D activities to support HI CORPORATION's 3D rendering technology for global markets as well as develop next-generation wireless technology targeting mobile phones. In addition, the regional subsidiary will serve as a business development base for China and Asian markets.

With Mascot Capsule Engine becoming the de facto 3D rendering technology standard for mobile handsets in Japan, HI CORPORATION has charted aggressive strategy to further promote its innovative 3D solutions around the world. The company considers Singapore a prime location to prepare for penetration of Chinese and Asian markets. Moreover, drawing from an educated and talented local pool of human resources, Mascot Capsule Singapore will be an invaluable center of activity in forging R&D necessary to meet the needs of these markets.

On the occasion of its new office launch in Singapore, HI CORPORATION President Kazuo Kawabata commented, "HI CORPORATION is proud to announce the establishment of its regional subsidiary, Mascot Capsule Singapore. We look forward to developing strong ties to the local business community, and now prepare to target China, a key market for us, as well as the many Asian markets that can benefit from our technology." [quote from EDB]

As the world's premiere 3D rendering engine for mobile devices, Mascot Capsule Engine is innovative, compact software that brings 3D models to life on small displays. The technology is now entering a trial phase in Singapore on Nokia and Ericsson mobile handsets. A favorable trial may lead to adoption of the technology for the wireless operators in Singapore.

Mascot Capsule Singapore is launching with an engineering staff of six, and plans to grow into a R&D center staffed with up to 20 engineers in the next four to five years. Key projects for the subsidiary include content development for Asia and associated optimizations and enhancements to Mascot Capsule Engine, as well as the development of other innovative solutions for wireless services.