Letter from President

TO OUR SHAREHOLDERS AND INVESTORS

Let me first express our sincere gratitude to shareholders, investors, and all stakeholders for their constant support.

I would also like to extend my sympathies to shareholders and investors affected by the Great East Japan Earthquake and to others in the devastated regions. I believe the earliest possible reconstruction is achieved.

I became president following a resolution adopted by the Annual General Shareholders’ meeting and subsequent the Board of Directors meeting, both held on March 25, 2011. ValueCommerce has been helping clients with online marketing for more than a decade as a pioneer in affiliate marketing, and has now entering a new era under the new management team. On July 1, we revised our organizational structure. Specifically, managers of the administrative, sales, and technical divisions and other personnel below their level were given the authority necessary to make quick decisions and take swift actions with an eye towards future market trends. According to the principle of running a business by putting the right person in the right role and by respecting employees’ will and ideas irrespective of nationality, age, or gender, we aim at increasing our corporate value globally, thereby serving our shareholders and investors.

Online advertising business is expanding beyond conventional PC and mobile platforms into social media, smartphones, and other new areas. As an advertising approach that has outstanding cost effectiveness and that is compatible to the era of slow growth, affiliate marketing is of rising significance. Recent statistics suggest that Japan’s consumer spending is growing to 60% or more of GDP, which is approximately 550 trillion yen. Closely related to the growth of the e-commerce market, affiliate marketing has the huge potential for further growth in line with the rise in online consumer spending.

For the fiscal year ended December 31, 2010, we achieved record profit and made our first dividend payment. We will be providing clients with high-quality, effective services to consistently increase our corporate value, while impartially returning profits to all stakeholders.

We respectfully ask our shareholders and investors for their continued support.
Thank you very much.

September 27, 2011

Yoichi Iizuka
Representative Director
President and CEO