
| 1. | Background for alliances CAR QUEST has been operating the Internet Live service since October 2005. This service allows USS auction members to participate in used car auctions via the Internet by using computers and other terminals. Internet Live gives individuals real-time access to the 18 auction sites nationwide operated by USS and its subsidiaries (the USS Group). Internet Live has a low operating cost because the service uses the Internet. As a result, this service has become very popular among small and midsize businesses. Currently, 23,220 companies are registered for this service. In addition, Internet Live gives its members the opportunity to participate in the used car auctions of companies other than the USS Group. The first link to a non-USS auction was established in November 2006. Currently, Internet Live members can participate in auctions outside the USS Group at the following 11 locations: JU Hiroshima, LAA Shikoku, LAA Kansai, BCN Auction, JU Nagano, bay-auc, ZIP Osaka, Hanaten Auto Auction, JU Gifu, KCAA Fukuoka and JU Aichi. These business alliances with Maruei and Kyushu Chuo Auto Auction provide Internet Live members with access to two more used car auctions. One is the KCAA Ebino site of Maruei, which is in the city of Ebino in Miyazaki prefecture. The other is the KCAA Yamaguchi site of Kyushu Chuo Auto Auction, which is in the city of Yamaguchi in Yamaguchi prefecture. This will give Internet Live members access to a total of 13 auction sites outside the USS Group. |
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Description of alliances These alliances add two auction sites to the non-USS Group network covered by Internet Live: KCAA Ebino and KCAA Yamaguchi. Furthermore, the new Internet Live members signed up at these two auction sites can participate in auctions of the USS Group as well. The alliances thus provide added convenience for the auction members of both USS and its alliance partners. These alliances are also expected to increase the number of Internet Live members along with fees paid by members for participating in auctions. These alliances will not have a material effect on consolidated results of operations in the current fiscal year. |
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Profiles of Maruei and Kyushu Chuo Auto Auction |
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4. |
Overview of USS Group used car auctions The USS Group operates used car auctions at 18 locations nationwide. A total of 44,003 companies are registered as members for on-site auctions, where members are physically present at the auction site. In addition, the USS Group has two systems for remote participation in auctions. One is the USS Globe Network, which has 4,839 companies registered as members. This service allows members to use a satellite TV at their workplaces to participate via a satellite link in auctions at all 18 USS Group locations as well as the used car auctions of alliance partners at 13 locations. The second system is Internet Live. Note: The numbers of members listed above are as of September 30, 2009. |
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