Remember: Triangle Technologies is perhaps the world's leading outsource for business development in Japan. We are almost a "plug and play" solution - within 4 weeks we can have an experienced team on the ground developing business for your company, at about 1/10th of the financial risk of doing it yourself, with a 90% success rate so far. Our clients include Israeli, European, and American companies.

Exchange Rate as of October 25th, 2001

$1 US = 122.80 Yen

***ISRAEL-JAPAN NEWS***

+FUJITSU TO USE INTERWISE E-LEARNING SYSTEM

Fujitsu FIP plans to use InterWise Millennium, a live e-learning system developed by InterWise, to train its system engineers. Under the Internet-based education system, more than one user can access the same Web site from his or her PC and communicate with one another during class.

+GIRAFA SIGNS AGREEMENT WITH IT CHANCE

Girafa, a developer of Internet visual navigation technology, signed a licensing agreement with the Japanese Internet company IT CHANCE. IT CHANCE operates one of Japan's biggest lottery websites.

***GENERAL TECHNOLOGY NEWS***

+VODAFONE ACQUIRES STAKE IN JAPAN TELECOM

Vodafone Group will raise its stake in Japan Telecom from the current 45% to 66.7% and acquire management control over the telecommunications firm.

+JAPAN'S BROADBAND CONTENT USERS TO REACH 12.9 MILLION IN 2002

According to EC Research, Japan's broadband content users will reach 4.3 million at the end of 2001, and increase to 12.92 million at the end of 2002.

EC Research classifies broadband content into six categories: (1) online games; (2) Internet media such as Internet radio/TV; (3) communications such as bulletin board systems and videophones; (4) software downloads and ASPs; (5) video distribution; and (6) music distribution.

+JAPAN'S OUTSOURCING MARKET TO REACH $34 BILLION IN 2002

According to IDC, Japan's information technology outsourcing market is expected to grow at an annual average rate of 9.6% with a value of $34 billion in 2005. Total outsourcing of systems development and operation is expected to grow by an average annual rate of 13.9% in 2005. The information-technology-outsourcing market will account for 50% of the information technology services market overall in 2004.

+INTERNET DATA CENTER SERVICE MARKET IN JAPAN TO REACH $9.3 BILLION IN 2005

According to IDC, Japanese Internet data center service market will reach $9.3 billion in 2005. In 2000, the Internet data service market was $4 billion.

+NEC GETS TOP SPOT IN MOBILE PHONE SHIPMENTS

According to the Multimedia Research Institute, NEC passed Matsushita in the first half of the year to become Japan's biggest supplier of mobile phones. During the six months to September, the first half of the corporate year, NEC, with a market share of 29%, was the only major cell phone maker to post year-on-year growth, boosting its domestic mobile phone shipments by 6% to 7.08 million units. Matsushita, with a market share of 25.6%, saw its shipments shrink by 2.1 %. It shipped 6.17 million mobile phones in the first half.

+JAPAN'S SERVER MARKET INCRESES

The Dataquest Unit of Gartner Japan reports that Japan's server market sales in the first half rose 30.3% to 231,065 units, reaching $3.8 billion, for an increase of 5.5% from the first half of 2000. UNIX server sales increased 21.6% in volume and a 16.0% rise in value from the first half of last year. Sales of PC servers rose 34.8% in volume and 16.1% in value

+RECORD NUMBER OF COMPUTER VIRUSES

The Information-Technology Promotion Agency of Japan states that there was a record-breaking number of reports of computer viruses and damage in August 2001. The total number of reports was 2,809 of which 592 cases were actual virus victims. The figure topped the largest number on a monthly basis. Of the 54 kinds of viruses reported in August 2001, the most reported was "W32/CodeRed," with 110 reports. The second highest number of reports on a given virus so far was observed in December 2000, which was 1,008 for the "W32/MTX" virus.

+YAHOO! BB SIGNS UP 1 MILLION SUBSCRIBERS

Those who signed up for "Yahoo! BB" service reached 1 million, however, only 40,000 of those users were actually able to use the service three days after its launch. Yahoo! BB, a high-speed service based on asymmetric digital subscriber line (ADSL) technology, was launched Sept. 1 and the 1 millionth subscriber joined up on Sept. 3.

+JAPAN'S SEMICONDUCTOR DEVICE ORDERS DECREASE 72.3%

According to the Semiconductor Equipment Association of Japan, domestic orders for semiconductor-manufacturing equipment, including imports, fell 72.3% on the year to $320 million July. July was the sixth consecutive month that orders in Japan have shown a year-on-year decline. Steppers and other equipment for wafer-processing equipment decreased 73%, while testers and other testing equipment decreased 67.8%.

+SONY SELLS OVER 20 MILLION PS2 SO FAR

Sony Computer Entertainment (SCE) has shipped more than 20 million PlayStation2 consoles worldwide since March 2000. Broken down, Sony shipped 6.86 million units in Japan, 8.55 million units in North America, and 4.63 million units in Europe.

+KDDI R&D LABS TO TEST IPV6 MULTICAST VIDEO DELIVERY

KDDI R&D Laboratories started a field trial of multicasting video using the next-generation Internet protocol called IPv6. The experiment will be conducted together with its parent company, KDDI, and Information Services International Dentsu.

***NEW TECHNOLOGIES***

+HITACHI DEVELOPS MPEG-7 TECHNOLOGY

The Central Research Laboratory of Hitachi has developed MPEG-7-compliant, image-searching technology for instant searches of a scene from a large volume of digital images. This technology reduces the features of the images to be added to images for retrieval

+ DOCOMO & IBM TO DEVELOP VIDEO TECHNOLOGY FOR 3G PHONES

NTT DoCoMo and IBM Japan plan to jointly develop new technology for efficiently transmitting a large volume of video over 3G cellular phone service and other advanced mobile communications. The technology enables the transmission of video at a maximum speed of 384Kbps, roughly six times that of current cell phone services.