Shanghai, June 2005 - DNE and Argo Graphics Inc. (Japan) announce the successful creation of new joint venture: D&A in Mainland China, to strengthen CAD/PLM technical support system for enterprise company, especially Japanese company. In the new JV, DNE will transfer current CAD/PLM group at around 40 employees; Argo Graphics will provide strong support to new JV by introducing new techniques, providing training, develop marketing, etc.

The capital of new JV is 1M US dollars, of which DNE holds 60% and Argo Graphics 40%. In new JV, Ms. Linda Lee, GM of DNE, will be the Chairman; Mr. Yoshimaro Fujisawa, President and CEO of Argo Graphics, will be the deputy Chairman. Starting from the very beginning around 40 employees, the estimated half year sales revenue is 500M Japanese Yen till December 2005.

The new JV will set up branch office in Beijing, Tianjin, Guangzhou, Wuhan and Dalian, as well as to build sales and technical support system in both Japanese and English language. Till December 2006, the technical support system team will expand to more than 60 people, with estimated sales revenue 1.2B Japanese Yen; furthermore till December 2007, it will expand to more than 80 people, with estimated sales revenue 1.5B Japanese Yen.

Shanghai DNE Technology Co., Ltd was founded in 1997. It is the important business partner of Dassault Systèmes China and IBM China; It is the first Dassault Systèmes certified Education Partner for all his products such as CATIA / SmarTeam / Enovia in Mainland China. DNE focuses on CAD/PLM implmentation and support, as well as UNIX/NT system, storages; application development based on IBM WebSphere and Lotus Domino. The main customers cover multi-national electronic industry and automobile industry of Japanese and European & US company.

Japan Argo Graphis Inc. was established in 1985. It's the listed company in Tokyo Stock Exchange main board, with more than 200 employees, above 25B Japanese Yen sales revenue.

Argo Graphics started its business cooperation with DNE two years ago, and asked DNE to provide corresponding technical support to his Japanese customers that enters China. However, because of the peak for foreign company enters the China Market, the technical service needs to improve. Argo Graphics Inc. established business cooperation system in the USA and Thailand before, but now it's the first time to setup joint venture in China.