To Our Shareholders and Investors

 We’ve reached an era in which an ever-wider range of services are available via the Internet. All such
 services are mediated by hardware, however, including computers (or “machinery” in the broadest
 sense). As such, the quality of communication between people and machinery will have a decisive
 impact on the usefulness of these services.
 Our vision is to make it possible to communicate with machines as part of everyday life. Interfaces
 with human-like communication capabilities are essential to achieving this goal; also important will be
 the integration of these interfaces with the social environment, the very fabric of our daily and working lives.

Business Development

 Advanced Media has established leading market shares in CTI (our mainstay voice recognition market)
 and conference proceedings, as well as an exclusive market share in medical applications. Moreover,
 by introducing Voice Activation Service (VAS) and Voice Data Service (VDS), we have developed the
 fee-based models needed to achieve sustained revenue streams while laying the foundations for stable
 sales and profit growth.
 Recently, with the rapid proliferation of smart devices and the resulting opportunities for applications
 of voice recognition technologies, we’ve actively invested in research and development to increase the
 accuracy of our voice recognition technology. We’re also investing in R&D for multilingual compatibility,
 including Asian languages, with our sights set on development in the key Asian markets that will
 continue to drive the global economy.
 With respect to our business-expansion initiatives, we have two major growth engines. The first
 consists of the core domains that already serve as our business foundation, while the second consists
 of new businesses, mergers and acquisitions (M&A), and overseas businesses. Powered by these two
 engines, we intend to achieve dramatic sales growth well into the future. Due in large part to the
 second growth engine, we believe annual sales growth can surpass 30% over the medium term,
 with annual growth in operating margins meeting or exceeding 20%.