August 30, 2013
To whom it may concern：
Company name Digital Garage, Inc.
Representative
Kaoru Hayashi, President and Group CEO(JASDAQ Code: 4819)(URL http://www.garage.co.jp/)
Information
Makoto Soda, Director, Corporate Strategy
Div.
TEL+81-3-6367-1111

Announcement of Stock Split, Adoption of Share Unit System, and Partial Amendment tothe Articles of Incorporation

Digital Garage, Inc. (the "Company") announces that the Board of Directors at the meeting held thisday passed a resolution authorizing a stock split, adoption of a share unit system, partial amendments
to the Articles of Incorporation and a revision of the dividend forecast, as stated below.

Details
1. Purpose of Stock Split, Adoption of a Share Unit System and Partial Amendments to the Articles ofIncorporation
The Company has decided to adopt a share unit system, which defines 100 shares as one unit, inaccordance with the Action Plan for the Consolidation of Trading Units announced by Japanese stock
exchanges on November 27, 2007. It has also decided to conduct a stock split at a ratio of 200 shares toone, to expand the base of investors in its stock by increasing the liquidity of the stock.
2. Overview of Stock Split(1) Method of split
Shares of common stock held by shareholders, who are listed or recorded in the final shareholder
registry as of the record date of September 30 (Monday), 2013, will be split on the same date at a ratioof 200 to one.
(2) Number of shares to increase resulting from the stock split
The following numbers of shares are available when a preliminary calculation is made based on thetotal number of shares outstanding as of June 30, 2013. The numbers, however, may increase due
primarily to exercises of stock options.

1(ⅰ) Total number of shares outstanding 235,596 sharesprior to the stock split(ⅱ) Number of shares to increase resulting 46,883,604 sharesfrom the stock split(ⅲ) Total number of shares outstanding 47,119,200 sharesfollowing the stock split(ⅳ) Total number of shares authorized to 120,000,000 shares
be issued following the stock split(3) Schedule for the stock split(ⅰ) Public notice regarding the September 13 (Friday), 2013setting of the record date(ⅱ) Record date
September 30 (Monday), 2013(ⅲ) Effective date

October 1 (Tuesday), 2013

3. Adoption of a Share Unit System(1) Number of shares constituting one share unit
The Company will adopt a share unit system in which the number of shares constituting one shareunit is fixed at one hundred (100) on and after October 1, 2013, the effective date for the stock split
stated in the foregoing section 2, Overview of Stock Split.
(2) Schedule for the new system
Effective date

October 1 (Tuesday), 2013

Note: The share unit for trading shares of the Company on the Tokyo Stock Exchange will be changed
to 100 shares as of September 26 (Thursday), 2013.
4. Partial Amendments to the Articles of Incorporation(1) Reasons for amendments
In accordance with the foregoing section 2, Stock Split, and the foregoing section 3, Adoption of a Share
Unit System, parts of the Articles of Incorporation of the Company will be amended as of October 1,
2013 by a resolution of the Board of Directors pursuant to the provisions of Paragraph 2, Article 184,
and Article 191 of the Companies Act.
(ⅰ) Article 6 of the current Articles of Incorporation will be amended in order to increase theCompany’s total number of shares authorized to be issued in accordance with the ratio ofthe stock split.
(ⅱ) When the stock split is conducted, a share unit system will be adopted concurrently.
Article 7 will be newly established in order to fix the number of shares constituting one
share unit at one hundred (100).
(ⅲ) Supplementary Provisions will be newly established in order to prescribe the effective
date for the amendment to Article 6 and the establishment of new Article 7.
(ⅳ) Articles of the current Articles of Incorporation will be renumbered due to theestablishments of new articles.

2(2) Content of proposed amendments (Changes are underlined)
Current articles(Total number of shares authorized to beissued)

Articles after amendment(Total number of shares authorized to beissued)

Article 6 The total number of sharesauthorized to be issued by the Company shallbe six hundred thousand (600,000).

Article 6 The total number of sharesauthorized to be issued by the Company shallbe one hundred and twenty million(120,000,000).

(Newly established)

Article 7 through Article 42(Text omitted)(Share unit)
Article 7 The number of shares constituting
one share unit of the Company shall be one
hundred (100).

(Newly established)(Newly established)

Article 8 through Article 43(Unchanged)
Supplementary Provisions
Article 1
The amendment to Article 6, theestablishment of new Article 7 and therenumbering of the following articles shalltake effect on and after October 1, 2013.

(Newly established)

2 These supplementary provisions shall bedeleted as of the effective date stated in thepreceding paragraph.
Note: Apart from the content stated above, the proposal for amendments to the Articles ofIncorporation that aims to define the content of rights to shares constituting less than one share unit
will be submitted at the 18th ordinary general meeting of shareholders to be held on September 26,2013. For details, refer to the "Announcement of Partial Amendments to the Articles of Incorporation"
announced today.
5. Revision of Year-End Dividends
Following the stock split, the Board of Directors of the Company will revise its dividend forecast for theyear ending June 30, 2014, which was announced on August 13, 2013, to five (5) yen per share, one
200th of one thousand (1,000) yen for the year-end dividend forecast. Since the revision will beaccompanied by the implementation of the stock split, no virtual change will take place.
Dividend per share
End of 2nd quarter

Year-end

AnnualPrevious forecast (August 13,2013)

0.00 yen

1,000.00 yen

1,000.00 yen

Revised forecast

0.00 yen

5.00 yen

5.00 yenPrevious year actual (Fiscal
year ended June 30, 2013)

0.00 yen

1,000.00 yen

1,000.00 yen

3[Reference](1) This stock split does not increase the Company’s capital.
(2) Following the stock split on October 1, 2013 and thereafter, the Company will adjust the strikeprices per share of its stock options issued by the Company, as stated below.
Strike price prior toadjustment

Strike price afteradjustment

4th stock options

184,879 yen

925 yen

6th stock options

304,500 yen

1,523 yen

7th stock options

297,095 yen

1,486 yen

9th stock options

1 yen

1 yen

10th stock options

1 yen

1 yen

(3) As the effective date for this stock split is fixed on October 1, 2013, year-end dividends for the fiscal
year ended June 30, 2013 will be paid in accordance with the number of shares prior to the stock split.

4