Square Enix Proposes Friendly TOB to TECMO, LTD.

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    TOKYO, Aug. 29 /PRNewswire/ -- Square Enix Co., Ltd. (the "Company")
 announced today that the Company submitted to the board of directors of
 TECMO, LTD. (Securities Code: 9650, 1st Section of the TSE, "TECMO") a
 proposal for basic conditions of acquisition of shares of common stock
 issued by TECMO (the "TECMO Shares") through a friendly take over bid (the
 "TOB") (the "Proposal") in order to obtain consent to the TOB by the board
 of directors of TECMO.
 
     (Logo: http://www.newscom.com/cgi-bin/prnh/20030403/SQUARELOGO)
 
     The Proposal was made in order to acquire the TECMO Shares through the
 TOB, and is subject to obtaining consent by the board of directors of TECMO
 no later than September 4, 2008. Therefore, please be advised that the
 Company will NOT acquire the TECMO Shares through the TOB as planned in the
 Proposal in case that the Company receives no response from TECMO or fails
 to obtain consent by the board of directors of TECMO to the TOB, by the
 date. This Notice shall not be construed as solicitation for sales and/or
 purchase of the TECMO Shares.
 
 

     1.  The reason to submit the Proposal
         Video games have been globally recognized as a major entertainment
         genre, and have now become an industry receiving considerable
         attention in terms of its market size and growth potential.  In the
         meantime, the game industry in Japan is standing at a critical
         juncture whether it continues to be a center of the video game
         industry in the world, or not.
         TECMO is a group of excellent creators with proven track-record in the
         global market, which is a precious human resource of Japan.  We,
         however, cannot be optimistic about the future of this significant
         resource, given the current circumstances surrounding TECMO.
         We believe that TECMO will be able to make a great leap forward by
         joining the Square Enix Group, which will provide the group with
         further growth opportunities as well.
         We are planning to position TECMO as a wholly-owned subsidiary of
         Square Enix Holdings maintaining TECMO's current organization and
         brand as in the cases of Square Enix and Taito.
 
     2.  Major Points of the Proposal
         a)  TOB Price: 920 yen per share
             Adding a premium of 30%+ to TECMO's closing stock price as of
             August 28, 2008 (706 yen).
 
         b)  Number of the TECMO Shares to acquire
             Lower Limit: More than half of the outstanding TECMO Shares upon
             fully-diluted basis (including residual shares subject to stock
             options).
             Upper Limit:  None.
 
         c)  Deadline to reply the Proposal: September 4 (Thursday)
             If the Company should, by the deadline, receive no response from
             TECMO, or fail to obtain consent by the board of directors of
             TECMO to the TOB, the Company will withdraw the Proposal, and will
             NOT acquire the TECMO Shares through the TOB as planned in the
             Proposal.
 
     About Square Enix Co., Ltd. and Square Enix, Inc.
 
     With headquarters in Tokyo, Japan, Square Enix Co., Ltd. (Square Enix)
 develops, publishes and distributes entertainment content including
 interactive entertainment software and publications in Japan, North
 America, Europe and Asia. Square Enix brings two of Japan's best-selling
 franchises -- FINAL FANTASY(R), which has sold over 85 million units
 worldwide, and DRAGON QUEST(R) which has sold over 45 million units
 worldwide -- under one roof. Square Enix is one of the most influential
 providers of digital entertainment content in the world and continues to
 push the boundaries of creativity and innovation.
 
     Square Enix, Inc. is a wholly owned subsidiary of Square Enix Co., Ltd.
 with offices in Los Angeles, California and Seattle, Washington. It handles
 operations in North America, including development, localization,
 marketing, and publishing of Square Enix titles. More information on Square
 Enix can be found on the Internet at http://www.square-enix.com.
 
     SQUARE ENIX and the Square Enix logo are trademarks or registered
 trademarks of Square Enix Co., Ltd. in the United States and/or other
 countries. All other trademarks are the property of their respective
 owners.
 
 
 

SOURCE Square Enix Co., Ltd.