SC to take 34% stake in Hachette Fujingaho, 
                              Japanese subsidiary and group of Lagardère
               to develop EC business in September and cross-media projects

          Sumitomo Corporation and Lagardère Active have announced today a strategic comprehensive alliance in the media and retail business in Japan.
Sumitomo Corporation (Main Office: Tokyo, President: Susumu Kato) agreed to take 34% stake of Hachette Fujingaho (Main Office: Tokyo, CEO: Yves Bougon), a wholly owned subsidiary of Hachette Filipacchi Presse(Main Office: Paris, CEO: Edward Russo). Both representatives of the companies have signed the share transfer agreement on the 14th of January.
The first development will be an E-commerce business under the ELLE's brand, using magazine and digital media (PC and mobile), starting from September 2009. Based on this agreement, Sumitomo Corporation will send employees to Hachette Fujingaho, including members of the board. A new E-commerce division will be established; whose head will be Hirokazu Karaki (Sumitomo Corporation).
Both companies will discuss new business opportunities in the media field, aiming to offer innovative and creative media solutions to readers, users and advertisers. Sumitomo Corporation and Hachette Fujingaho will develop E-commerce platform with other magazine brands, using multimedia resources (digital media, magazine, TV, retail network, movie, events, etc.).

          Lagardère Active (Main Office: Paris, CEO: Didier Quillot) is the first multimedia group in France and one of the world biggest multimedia group, operating in 43 countries, publishing more than 220 magazines (included licenses), owner of 27 radio channels and 9 TV specialized channels, accelerating its growth in the digital field since 2006 through organic growth and acquisitions. Lagardère Active's goal is to become the leading producer of contents, particularly in digital form, and aggregation of contents across a range of markets where the Group is already internationally present.
Hachette Fujingaho, its wholly owned subsidiary in Japan, is publishing the Japanese edition of ELLE, the worldwide well-known and unique fashion and lifestyle magazine and many other magazines including, but not limited to "25ans", "Fujingaho", "marie claire" (under a licensing agreement with Marie Claire Album) and "MEN'S CLUB".
Hachette Fujingaho was a pioneer in the publishing business through the launch of a unique digital media under ELLE brand in 1996. More than 1 million unique visitors visit ELLE ONLINE per month, which makes it one of the 10 largest digital media in the women segment. In order to move and develop a multi-media company to deal with the digital trend, Hachette Fujingaho aims to transform the traditional magazine business model and develop new business activities with diversified sources of revenues. To accelerate this innovative process, the decision has been made to collaborate with new industrial partners outside of the publishing sector.
Taking profit of the paradigm shift in the retail business, Sumitomo Corporation is also accelerating its development in brand business with multi-channel retail using a various range of media, around Jupiter Shop Channel -the biggest TV shopping channel in Japan- websites, mobile sites and other media in collaboration with its brand business assets like Barney's Japan, Lancel Japan, Marc Jacobs Japan.

          The first step of the alliance will be the launch of the EC site under the ELLE brand, planned for end of September. That would be the first operation of this kind for the ELLE global network. Selling items will cover up-and-coming brands to luxury brands in the world. Purchasable merchandise would be personalized and coordinated under the "ELLE" taste and linked with the magazine and digital operations. In the first year, the target has been set at 600,000 users. The EC site will support and offer women who appreciate the modes, and are sensitive to the trends, bringing them a new shopping experience focused on fashion and accessories as well as other themes. Privilege functions and personal customized mail service would also be offered to registered members. Expectation in the new business is high since ELLE network has already expanded in 42 markets with 6 million copies/month, 23 million readers/year and 11 million unique visitors worldwide (27 websites). 

          Hachette Fujingaho would bring its expertise and experience in the upscale print and digital media targeting active women; and enhance its operations thanks to Sumitomo Corporation's highly esteemed performance in direct marketing business through TV mail-order channels, and the high potential of its multi-channel retail business. The two companies' goal is to create a new model for media business in Japan based on their respective and complementary strengths.


■ About Lagardère Active
Established        : 1826      Capital : 560 000 000 Euro
Address　           : 149-151, Rue Anatole France, 92300, Levallois-Perret, Paris, FRANCE
Main Business    : Magazine, radio, special-interest TV channels, TV production and video
                           distribution, digital media, and ad media buying,etc

■ About Hachette Filipacchi Presse
Established        : October, 1958      Capital : 31 500 000 Euro
Address　           : 149-151, Rue Anatole France, 92300, Levallois-Perret, Paris, FRANCE
Main Business    : Magazine etc.

■ About Hachette Fujingaho
Established         : March, 1989    Capital : 1,950M JPY
Address　            : Minami-Aoyama Tokyu Bldg. 3F, 3-8-38 Minami-Aoyama, 
                            Minato-ku, Tokyo 107-0062, Japan
Main Business     : Magazine, books, custom publishing publications, digital media.

■About Sumitomo Corporation
Established         : December, 1919   Capital : 219.3 billion JPY (as of 31st March 2008)
Address　            : Harumi Island Triton Square Office Tower Y
                             8-11 Harumi 1-chome, Chuo-ku, Tokyo 104-8610 Japan
Main Business     : General Trading Company