SIOS Technology, Inc.
SIOS Technology makes Gluegent, Inc. a subsidiary
to expand its Web application software business
SIOS Technology, Inc. (Head office: Minato-ku, Tokyo; President and CEO: Nobuo Kita; listed on the Mother’s section of the Tokyo Stock Exchange, code 3744; hereinafter referred to as “SIOS”) is pleased to announce that it will acquire 80% of the issued shares (800 shares) of Gluegent, Inc. (Head office: Shibuya-ku, Tokyo; President and CEO: Masataka Kurihara; hereinafter referred to as “Gluegent”) and make it into a subsidiary today.
1.Objective
SIOS and Gluegent will jointly develop new software products and solution services using Web application software that utilizes the open source software (OSS) owned by both companies. Also, both companies will deploy appropriate human resources for consigned Web application development and similar tasks through the interchange of the engineers of both companies, to promote a highly productive, flexible organizational structure.
SIOS has provided a wide range of products and services from development, sale and support of software products to design, development and support of corporate information systems with OSS, including Linux, and Java as the core technologies. At the same time, SIOS has contributed to the construction of important information systems that play a central role in corporate activities, by using leading software technology. In particular, with Linux-related technology, SIOS has provided high value-added services including advanced support at the kernel level and cluster construction. SIOS also has been engaged in developing numerous systems as a pioneer of the Web application business using Java.
On the other hand, Gluegent is proud of its achievements in the development of many advanced systems based on the most up-to-date technological infrastructure centering on Java. In particular, Gluegent has increased its profitability in architecture consulting relating to financial, logistical and social infrastructure projects that require high-load, high-speed processing. Masataka Kurihara, president and CEO of Gluegent, has made large, international contributions to realizing an advanced information-oriented society and developing economic activities beyond the framework of the company, as representative director of a non-profit organization called Seasar Foundation, the largest OSS developer community in Japan.
2.Overview of Gluegent, Inc. (as of December 31, 2007)
(1) Corporate name: Gluegent, Inc.
(2) Representative: Masataka Kurihara, president and CEO
(3) Location: 1-8-7 Shibuya, Shibuya-ku, Tokyo
(4) Established: July 12, 1999
(5) Major business operations: Design, development, sale and maintenance of computer software. Provision of system consultation services.
(6) End of fiscal period: April 30
(7) Number of employees: 13
(8) Total number of issued shares: 1,000 shares
(9) Composition of shareholders and the ratio of shareholding:
| Shareholder | Number of shares held | Shares held as a ratio of all shares issued | Remarks |
|---|---|---|---|
| Business Trust Co., Ltd. | 800 | 80% | Shares will be transferred in connection with turning Gluegent into a subsidiary. |
| Masataka Kurihara | 200 | 20% | Will continue to hold these shares. |
(10)Performance trends in the most recent fiscal year:
| Period ending April 30, 2007 | Interim period ending October 31, 2007 | |
|---|---|---|
| Sales | 113,746,000 yen | 71,449,000 yen |
| Ordinary income | 5,467,000 yen | 9,517,000 yen |
| Total assets | 64,978,000 yen | 73,783,000 yen |
| Total capital | 35,000,000 yen | 35,000,000 yen |
3.Schedule
January 31, 2007 Conclusion of basic agreements
February 6, 2007 Conclusion of a stock transfer contract (scheduled); decision on day of stock acquisition by purchase (scheduled)
4.Effect on SIOS’s future performance
The effect on the performance of SIOS in the period ending December 31, 2008 is expected to be negligible. We will make an announcement according to the long-term business development of both companies whenever necessary.
