Our company will inform that the dissolution of clover studio Ltd. that is our subsidiary company was resolved in Managing Board of holding on October 12, 2006.

Record

1. Outline of subsidiary company that dissolves
(1) Trade name: Clover studio Ltd.
(2) Address: 3 chome in plains townsecond No.8 in Osaka City Chuo Ward
(3) Representative name: Halhiroshi Tsujimoto
(4) Foundation Date: July 1, 2004
(5) The capital: 90 million yen
(6) Activities: Development of domestic game software
(7) Main shareholder: Capcom Ltd. 100%

1. Reason for dissolution
It was assumed that this company was dissolved to attempt efficient development development by selecting and concentrating the entire group though clover studio Ltd. had developed domestic game software to create the title that had originality.

2. Schedule for the future
Liquidation Musshima: Schedule at the end of March, 2007

3. Outlook for the future
About 400 million yen is scheduled to be summed up to the Financial Statements for Interim Period Ended Sept 30, 2006 as an extraordinary loss about loss Mi Cogac according to the dissolution of a subsidiary company concerned. The content is woven to the correction of the performance forecast dated of the same day.