Message from Management

To Our Shareholders

Thank you for your continued support of AMUSE Inc. I am pleased to present the results for the 32nd fiscal year ended March 31, 2010.

In the fiscal year under review, we judged that it would be necessary to undertake structural reforms to the Media Visual Business, given the rapidly contracting DVD market. Consequently, we took steps to protect our financial health, build an appropriate organization, and improve efficiency with an eye to our future business deployment. Nonetheless, we posted our first net loss since listing our shares on the Tokyo Stock Exchange. We sincerely apologize to our shareholders for the concern this has caused. Bearing this result in mind, we are united in our commitment to improving our performance.

Meanwhile, I am pleased to report that the Artist Management Business of the Amuse Group remained solid. In addition to Masaharu Fukuyama and BEGIN, who last year marked the 20th anniversary of their debut, live performances by Porno Graffitti, Perfume and flumpool also enjoyed the loyal support of their fans. I believe that artists working with the Company had many more opportunities to be seen by our shareholders on television programs, and in commercials and films. This is thanks to the activities of artists with whom we have enjoyed a long working relationship, including Yuji Miyake, Goro Kishitani, Yasufumi Terawaki, Yasuko Tomita, and Eri Fukatsu, in addition to the solo activities of the members of Southern All Stars, which is currently on hiatus, as well as the rise of young artists such as Haruma Miura, Takeru Sato, Yuriko Yoshitaka and Riisa Naka.

We will continue to develop the optimum environment for our artists, further developing our management know-how, the strength of the Amuse Group.

At the same time, the Group needs to adjust to changes in the operating environment, which are sufficiently significant as to require us to reform the structure of our existing business. For instance, Geishin Creative Tokyo Inc, a manufacturing subsidiary we established in December 2009, has set up its main production base in China and put in place a system to independently procure goods that will delight our customers, by adding more value to the content created by our artists. As a result, it is playing a role in increasing the depth of our system, which combines the manufacturing and sales of music and the visual goods of the Group.

In addition, we will respond to changes in the environment also, with strategies for rapidly developing Asian markets and for the active senior market.

We will continue to deliver quality entertainment that combines tradition, the strength of the Group, and innovation, as we enter new businesses and markets. We ask for your continued support and encouragement in the years to come.

Tatsuro Hatanaka
Representative Director and President

As of June, 2010