For years people have relied on GPS equipment for generating positioning information. Unfortunately, GPS cannot be used indoors, and there is a significant time lag before positioning can begin. PlaceEngine technology offers a viable solution by taking advantage of the growing popularity of wireless LAN (Wi-Fi) systems. It determines a user's location by using signals emitted by numerous Wi-Fi access points. This approach can be used to estimate positions even in indoor or underground locations, where GPS is not an option.

| 1. | The first step is to install the PlaceEngine client software on a Wi-Fi terminal. | 2. | The PlaceEngine client software monitors signals from nearby Wi-Fi access points and acquires Wi-Fi data, including MAC addresses, SSIDs and field strengths. |

| 3. | The client software transmits the Wi-Fi information to the PlaceEngine server. |

| 4. | The PlaceEngine server estimates the user's position (including longitude, latitude and street addresses) by comparing this data with Wi-Fi information stored in its database. The results are sent back to the client software. |

| 5. | If no estimation results are returned from the PlaceEngine server, or if the results are incorrect, the user can register the current location to correct PlaceEngine's location estimation. |

| 6. | The PlaceEngine client software also works in conjunction with websites configured to support the PlaceEngine API. When visitors hit the "current location" button on these websites, various web-based positioning services can be provided, including maps displaying the user's current location, or downloads of local information, such as traffic data or locations of nearby restaurants. |



| * | Sony Computer Science Laboratories initiated PlaceEngine research and development. Due to technological characteristics of the technology, including its network externality, Sony decided that PlaceEngine should be developed as openly as possible as an "ecosystem" in a network environment. This approach carried the potential to enhance the ultimate value of the technology more than closed development within a single company or product. Koozyt, Inc. was established under the ownership of So-net Entertainment Corporation to handle licensing and PlaceEngine technology-based solution proposals. Koozyt is currently developing PlaceEngine business through tie-ups with PlayStation Portable (PSP) game titles and major service sites. |