<<<< Japan High-Tech Update>>>>
A monthly review of the latest developments in Japan’s IT, telecom, and life sciences sectors

April 2005 - Volume VIII, Issue IV

Triangle Technologies is the leading Japan Israel business development and investment advisory firm
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Triangle Technologies’ ---- Japan High-Tech Update is a monthly review of the cutting edge of Japanese high-tech This document may be redistributed provided that the 3 lines containing this notice accompany it. For more information, please contact newsletter@triangletech.com-- +972-3-575-8636


Table of Contents:
  • Dan's Desk

  • Triangle Technologies News

  • Israel-Japan News

  • Business News

  • Technology News
  • Life Sciences News and Environments News


  • Exchange Rate as of April 6, 2005

    $1 US = 108.48 Yen


    Dan's Desk

    From Triangle's CEO

    Hello all:

    Two weeks ago Japan Communications Inc. www.j-com.co.jp/corp/en went public in Japan - the offering price was $500 (@100 Yen/$), the IPO price was $700, with 34,000 shares being issued for a total offering of about $17 million. The offering was highly oversubscribed (some estimate 50:1) and the share price shot up to about $1200 on Friday, reflecting a market value of about $250 million, on $50 million revenues.

    JCI is Japan's first and leading MVNO (mobile virtual network operator), founded in 1996 by Frank Sanda. JCI is a telecom carrier which provides wireless data and voice services to corporations, and wireless data services to consumers. JCI's b-mobile "communications battery" card which is a very popular invention - communications in a box. Buy it, plug it in, and you have unlimited wireless access anywhere. No ISP, no sign up, no anything. WLAN hot spots too.

    And last Friday (Apr 29, 2005), the JCI case was taught to 900 Harvard Business School MBA's as an example of how entrepreneurship is alive in Japan, and how Japan represents unique opportunities in certain sectors - JCI could not have been started in the US or Europe.

    The JCI story is not over, but the IPO is certainly an important milestone. It is a classic start up story of a pioneering vision, an unusually capable founder, strong venture capital backing (JAFCO) and US VC's, and a strong team. Despite the great foundation, the road was a rocky one as for many ventures, with JCI facing several life threatening crises along the way, including a withdrawn NASDAQ IPO in 2001, a drastic workforce reduction, and difficulty raising private equity.

    It is a tribute to Frank Sanda that he persevered throughout and overcame all the difficulties, a sign of moral fiber and entrepreneurial tenacity and persistence. Congratulations Frank. (Frank Sanda is a Triangle Technologies Advisory Board Member and I have personally followed JCI's trials and tribulations from the beginning).

    Good luck

    Dan



    ***TRIANGLE TECHNOLOGIES NEWS***

    +SONY SELECTS RADIOSCAPE'S STATE OF THE ART DIGITAL RADIO MODULE DESIGN

    Triangle is proud of that Sony Corporation has chosen our British client’s RadioScape’s RS350A™ DAB module design as the basis for its upcoming automotive DAB radios. This unique Software Defined Digital Radio solution provides the flexibility for customers, such as Sony, to customise the module to create products that meet their specific requirements.

    ***ISRAEL-JAPAN NEWS***

    +ISRAELI HIGH-TECH CONFERNCE IN TOKYO

    On April 13th, more than 50 Israeli companies attended the conference organized by IVC and the Embassy in Tokyo. Several hundreds Japanese guests attended the event. Mr. Olmart who sponsored this event took advantage of his visit to Japan to meet Mr. Koizumi as well as other ministers and heads of the industry.

    ***BUSINESS NEWS***

    +1.2 MILLION FAIL TO PAY NATIONAL PENSION PREMIUMS

    (Kyodo, April 7th) About 1.2 million people failed to pay national pension premiums in fiscal 2003 despite earning more than 5 million yen in annual income, a Social Insurance Agency survey showed. The agency is considering taking forcible measures to have them pay premiums.

    +KDDI ANNOUNCES SUBSCRIBERS TO 3G CELLULAR PHONES EXCEED 18 MILLION

    (JCN Newswire, Apr 8th) - KDDI and Okinawa Cellular announced that the total number of subscribers for 3rd generation cellular phones provided by KDDI and Okinawa Cellular exceeded 18 million on April 6, 2005. CDMA 1X au cellular phones On April 1, 2002, enabling the seamless use of nationwide services exclusive to 3G cellular phones, such as "Movie Mail", "Photo Mail", and EZ "Chaku Uta(R)". CDMA 1X WIN, based on the CDMA 1x network, launched in Novemebr 2003, enabling high speed data communications of up to 2.4Mbps, and allows the popular 3G EZweb services EZMovie and EZ Chaku Uta. In addition, CDMA 1X WIN hosts a series of rich services dedicated to CDMA 1X WIN, including EZChannel that automatically distributes various genres of program, and Live Camera, a service that delivers desired video content in real time.

    Sales record through breaking the 18-million subscriber level
  • April 1, 2002 --- Launched 3G cellular phone service
  • June 23, 2002 --- Acquired over 1 million subscribers
  • Jan. 16, 2003 --- Acquired over 5 million subscribers
  • Sept. 16, 2003 --- Acquired over 10 million subscribers
  • July 20, 2004 --- Acquired over 15 million subscribers
  • April 6, 2005 --- Aquired over 18 million subscribers

    +SONY SAYS SOLD 500K PSPS IN TWO DAYS IN N. AMERICA

    (Reuters, April 7th) Sony Corp. sold 500,000 units of its PlayStation Portable handheld video game device in the first two days after its North American release. The $249 PSP Value Pack came out March 24 in the United States. There were mixed reactions to the early sales, with some analysts saying the device was not selling as fast as some large chains might have expected. But Sony said the PSP generated a total of $150 million in first-week sales at North American retailers. The PSP came out late last year in Japan and has sold more than 1 million units there to date. Sony postponed the European launch of the.

    +MARCH CONSUMER CONFIDENCE DECLINES TO 45.2

    (Bloomberg, April 15th) Consumers grew more pessimistic for the first month in three, suggesting that household spending may not support a recovery. Confidence among households with two or more people fell to 45.2 from 47.6 in February. The Index reached a 13-year high in August last year of 49.2. In Tokyo, home to one in 10 Japanese, confidence fell to 47 from 47.5. Exports rose at the slowest pace in more than a year in February as shipments of electronic equipment declined, casting doubt on the strength of the recovery. Exports rose 1.7 percent from a year earlier, a government report showed March 23. In January and February the economy added 190,000 jobs and the unemployment rate has dropped to 4.7 percent from a record 5.5 percent in January 2003.

    ***TECHNOLOGY NEWS***

    +SONY UNVEILS IPOD RIVAL WITH 20-GIGABYTE HDD

    (Kyodo, April 7th) Sony Corp on Wednesday unveiled a digital music player to compete with Apple Computer Inc's popular iPod in the portable music market. Slightly smaller than a cigarette pack, the new product will go on sale in Japan on April 21 for about 35,000 yen. The Network Walkman NW-HD5 has a 20-gigabyte hard disk drive capable of recording up to around 13,000 tracks of music, according to the leading consumer electronics maker. In the area of battery life, the NW-HD5 can continuously play music for a maximum of 40 hours.

    +CARBON FIBER PANELS FOR CARS

    (nikkei.co.jp, Apr 22nd)Toray Industries says that it has developed a new process to mass produce an ultra-lightweight carbon fiber and resin compound, for use in making auto panels in place of sheet steel. The new material is 50% lighter than steel and yet five times stronger which means both improved performance and fuel efficiency. Toray will start supplying the material to carmakers for use in doors and car bodies, in 2008.

    +NEW ADHESIVE SHEET REMOVES OLD PAINT

    (nikkei.co.jp, Apr 8th)Sliontec Corp. has created a sheet of adhesive that can be used to peel off old paint simply by applying it to a painted surface. The new material is applied to the painted surface for 10-20 hours, and the adhesive softens the paint then strips it off. Given how time consuming and messy it is to remove paint at present.

    ***LIFE SCIENCES AND ENVIROMENT NEWS***

    +JAPANESE, MONACO WOMEN HAVE LONGEST LIFE SPAN AT 85 YEARS

    (Kyodo April 7th) Japanese women have the longest life expectancy in the world with an average of 85 years, tying with women in Monaco, according to a report by the World Health Organization. The average life span of a Japanese person in 2003 was 82, also the world's longest, with Japanese men reaching 78 years, tying with their counterparts in Switzerland and Sweden, the report shows.

    +NEW PROTEIN BIOCHIP

    (nikkei.co.jp, Apr 15th)The National Institute of Advanced Industrial Science and Technology (AIST) has announced a new biochip which can analyze up to one million drug samples per day, to help automate lab and patient testing. The new chip is essentially a wafer of glass carrying a dense grid of microscopic enzymes which react to drug samples and show up under fluorescent beams emitted by the chip.

    +GOZUKON ENHANCES IMMUNE SYSTEM

    (nikkei.co.jp, Apr 15th) Japanese research has confirmed that traditional Japanese fermented foods, such as fermented sesame, soybeans (Nato), and seaweed, assist in boosting the human immune system. The researchers conducted tests on 41 human subjects, divided into test and control groups, and found that a plant lactic bacteria called Lactobacillus pentosus, nicknamed "Gozukon", increased the occurrence of natural killer lymphocytes in the test group subjects by up to 40%. The researchers hope to use Gozukon for sufferers of allergies.

    +KONICA MINOLTA TO RELEASE WRISTWATCH-SIZE PULSE OXIMETER IN MAY

    (JCNN, April 11th) Konica Minolta announced that it will launch the Oxygen Saturation Monitor PULSOX-300, a wristwatch-type pulse oximeter. The new lightweight pulse oximeter can measure arterial oxygen saturation and pulse rates while the user wears it on the wrist. It is suited for medical care at home. The suggested retail price is 126,000 yen ($1,170). This product will initially be introduced in the domestic market and later overseas.

     

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    Authorized by Ehud Nachmany - Marketing Communications Director

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