Shanghai, September 2005 - The opening ceremony of D&A Technology (Shanghai) Co., Ltd. was held at Shanghai & Guangzhou Sep 1st~2nd.

D&A is the joint venture of DNE and Argo Graphics Inc. (Japan), to strengthen CAD/PLM technical support system for enterprise company, especially Japanese company. In D&A, DNE will transfer current CAD/PLM group at around 40 employees; Argo Graphics will provide strong support to D&A by introducing new techniques, providing training, develop marketing, etc.

Sep 1st, afternoon, D&A opening ceremony was held at Shanghai Garden Hotel. Ms. Linda Lee, General Manager of DNE; Mr. Ishikawa Toyoji, DGM of DNE; Mr. Fujisawa Yoshimaro, Chairman of Argo Graphics; Mr. Fukunaga Masayuki, Director of Argo Graphics; Mr. Igata Hirohiko, HR & Admin Director of Argo Graphics joined ceremony and made speech. Mr. Katsumi Ohyama, Project Manager for Japanese based companies, Industrial Sector, IBM Great China; Mr. Denis Georgeon, Chief Representative of Dassault Systemes China made greeting speech. Mr. Kazuo Hanaoka, President of Pascal Research made keynote. About 200 guests joined opening ceremony.


Background:

The capital of D&A is 1M US dollars, of which DNE holds 60% and Argo Graphics 40%. In D&A, 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 Systmes China and IBM China; It is the first Dassault Systmes 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.