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Press Release September 29 , 2000


DDI POCKET Launches Sound Market, a Rich Content Downloads Service

DDI POCKET, Inc. is pleased to announce today that it will launch Sound Market, a service offering music, entertainment and educational content to users where users are able to take advantage of the features of H" services which are reliability of the high speed data transmission, low fees and its support for downloading images.

Today, there is a focus on the music delivery service, where users can download compressed music data from the Internet. This service can be offered to mobile handsets by taking advantage of H"'s high speed transmission and low fees. The next generation mobile communications service will be a reality, with the expansion of the market and content are considered as merchandise to be purchased.

Sound Market is a service that provides music, entertainment, education and other meaningful information for daily lives in data, compresses the data and enables users to download them. The data downloaded is stored in the memory card of the handset, and can be replayed on a player. The variety of the content to be provided includes music, entertainment, education, culture, languages, sounds of nature among many others.

At the initial stage of the service provision, the service will be based on a technology standard for delivering music content to mobile devices, called Keitai de Music, which are being developed by Sanyo Electric Co., Ltd., Hitachi, Ltd., Fujitsu, Ltd., and Nihon Columbia Inc.

The devices needed for Sound Market are the combination of RZ-J90, a device made by Sanyo Electric Co., Ltd. that support feel H", and the KdM remote control player RZ-RM1 that is connected to the RZ-J90, or the RZ-J91, a device with a player built-in, that will be released from Sanyo Electric.

DDI POCKET will be aggressively promoting rich content downloads services taking advantage of the large service coverage of the 64kbps data communications services, which is the fastest among mobile services, and the low service fees.

Sound Market, a Rich Content Downloads Service

When downloading content with heavy data such as music, users must be able to download them in a short time at low fees. In this aspect, Sound Market is a next-generation service fully taking advantage of the features of H".
Sound Market will provide a wide variety of content from entertainment to education, in addition to downloading of music content.
Field of content to be provided * Music with a MD quality
* Entertainment such as Rakugo and Manzai, the Japanese comedy shows
* Educational content, such as English conversation
* Languages and dialects
* Cultural content such as lectures and interviews
* Sound of the waves, humming bugs and other sounds of nature


1. Overview of Sound Market

In providing sound Market, DDI POCKET collects music and other content access fees from users (DDI POCKET service subscribers) together with communications fees, and pay content access fees to content providers.
DDI POCKET subscribers are not required to apply for another service in accessing the Sound Market content, but they need the devices that support content downloading services.


2. Service Overview of Sound Market

Sound Market provides the following services.
(1) Download and replay
Users access the Sound Market Center, and from the menu panel, select music of their choice, download and store the content into a memory card, and are able to replay it afterwards.
The content is downloaded simultaneously with the provision of the license keys to read the encrypted content data or the license keys are being provided separately.
(2) Listening to songs before purchasing
Users are able to listen to the content of their interest before purchasing it. They are able to take the advantage of H"'s high sound quality. They will be accessing the servers for trial listening of the music and the music will be provided via voice communications circuit. (Approximately 45 seconds for one song title.)
(3) Gifts
You can give the Sound Market content to the other Sound Market users as gifts. For example, you can give to your friend his or her favorite song as their birthday present. You give to your friend a license key of the selected song title. You also pay for the content fee.
(4) Guide of CD stores by using the location information function
Users who wish to purchase the CD of the songs they have listened to, or had purchased from Sound Market, will be able to visit the CD shop closest to their present location, guided by the information location functionality provided by DDI POCKET.
(5) Purchase of CDs by catalog shopping
Users are able to purchase the CD of the songs they have listened to, or had purchased from Sound Market, from the online catalog shopping sites on their handsets.


3. Adoption of Keitai de Music System

Sound Market will begin based on a technical standard called Keitai de Music, which is a music content delivery system for mobile devices developed by four companies, Sanyo Electric Co., Ltd., Hitachi, Ltd., Fujitsu Ltd., and Nihon Columbia Inc. The principal features of Keitai de Music system standard are as follows.
(1) Data compression standard
The original content (CD data) is too heavy for downloading. In order to adjust the data volume so that sound quality will not be significantly affected, MPEG-1/AudioLayer3 are being used for data compression.
(2) Specifications for copyrights protection
Copyrights are protected and illegal copies are prevented, by using UDAC-MB, a technology used widely for protecting content, assuring content security. UDAC-MB is a technology that strongly protects content from illegal use, by securely exchanging replay license key data among the content distribution server system, secure multimedia cards, and music replay chips.
(3) Secure multimedia card
The card comes with the encryption/decoding functionalities, and is able to store the license keys, etc., that are used for encryption and decoding, in the protected space in the card. Furthermore, content protection command sets had been added to the card, achieving a level of security required by music delivery systems.


4. Usage fees of Sound Market

The fees for using Sound Market are as follows. The content fees are charged to users together with communications fees. (Users are charged content fee when the downloads have been completed.)
(1) Communications fees (for browsing the menus, listening, and downloading content)
13 yen/60 seconds (a flat fee nationwide during all hours)
(2) Registering for sending Sound Market content as a gift
10 yen/once


5. Service Launch Date

The service is scheduled to begin on November 30, 2000.


6. Structure of Sound Market and Roles of Components



H"LINK World Spreads

H"LINK is a direct Internet access service where users are able to access the Internet with the H" and feelH" handsets alone. In addition to e-mails and other text based IP connection services, the wide ranging portfolio of services including the location information service, ASP services (for businesses), mixed multimedia content such as sounds/music (feel Sound), images in color (for feelH" users), and the rich content downloads service such as Sound Market, is spreading the possibilities of the mobile content services where users just need a mobile handset.
Going forward, DDI POCKET will work on other types of rich content such as images and games.



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