April 25, 2008
SQUARE ENIX CO., LTD.
Yoichi WadaPresident and Representative Director(Code: 9684, Tokyo Stock Exchange, First Section)
Contact: Michihiro Sasaki
General Manager, Corporate Strategy Division

Notice regarding Implementation ofPure Holding Company System
SQUARE ENIX CO., LTD. (the “Company”) announced today that the Company’s board ofdirectors resolved, at the board of directors meeting held on April 25, 2008, to decide on apolicy to implement a pure holding company system by means of the company split(Incorporation‐type Company Split) method, whereby a newly‐established andwholly‐owned subsidiary succeeds to the Company’s businesses effective as of October
1, 2008 (the “Company Split”).
In connection with the Company Split, the Company will change its corporate name toSQUARE ENIX HOLDINGS CO., LTD. as of October 1, 2008. The stock issued by the Company
will continue to be listed on the First Section of the Tokyo Stock Exchange after theCompany Split is complete.
The implementation of the Company Split is subject to approval by a general meeting ofCompany shareholders to be held in June, 2008.
The Company will make an additional announcement soon after the Company’s board ofdirectors resolves the details of the Company Split.

1. Purpose of the Company Split
It is crucial for the Company to achieve mid‐ to long‐term growth while maintaining
profitability through the provision of high‐quality, sophisticated content and services.
However, the business environment has been changing as a result of increasingly
diversified customer preferences and swiftly advancing technological innovation due to therapid development of an IT and telecommunications infrastructure.
Within said business environment, the Company has determined it indispensable toimplement a group company management system under which each member company’s
profitability and accountability are clearly measured, and strategic alliances, including
capital affiliations with third parties, are facilitated. The Company, therefore, has decided
to implement a pure holding company system.

2. Outline of the Company Split(1) Schedule of the Company Split
Record Date of the General Meeting of Shareholders:Meeting of the Board of Directors for approval of the policy:
Meeting of the board of directors for approval ofthe Company Split:
Meeting of the General Meeting of Shareholders
for approval of the Company Split:
Effective Date of the Company Split:

March 31, 2008
April 25, 2008
May 23, 2008 (scheduled)
June 21, 2008 (scheduled)
October 1, 2008 (scheduled)(2) Method of the Company Split
The Company, as the Transferor Company, will newly establish SQUARE ENIX CO., LTD., as
the Succeeding Company, through the Incorporation‐type Company Split method.
(3) Reduction of Capital due to the Company Split
Not applicable.
(4) Rights and Obligations to be transferred to the Succeeding Company
The Succeeding Company will assume, as of the effective date of the Company Split, allassets, liabilities, rights and obligations, and employment relations pertaining to businesses
to be transferred.
The Company will be jointly and severally liable for all liabilities to be assumed by theSucceeding Company.
(5) Liability Fulfillment
Regarding the liabilities to be borne by the Transferor Company and Succeeding Company,
following the effective date of the Company Split, the assets of these companies areanticipated to surpass liabilities, and it has been determined that no problems are expectedin the fulfilling of said liabilities.
3. Outline of the Parties

Corporate Name

Major Businesses
Date of Incorporation
Address of Headquarters
Name and Title ofRepresentative
Common Stock

The Transferor Company(as of September 30, 2007)
SQUARE ENIX CO., LTD. (to be changed toSQUARE ENIX HOLDINGS CO., LTD. as ofOctober 1, 2008)
Planning, development, and sales ofcontent including games and services.
September 22, 1975
3‐22‐7, Yoyogi, Shibuya‐ku, Tokyo
Yoichi Wada
President and Representative Director
9,290 million yen

The Succeeding Company(forecast after the Company Split)
SQUARE ENIX CO., LTD. (scheduled)

Planning, development, and sales ofcontent including games and services.
October 1, 2008 (scheduled)
3‐22‐7, Yoyogi, Shibuya‐ku, TokyoYoichi Wada
President and Representative Director
TBD

Outstanding Shares
Net Assets
Total Assets
Fiscal Year End
Number of Employees
Major Business Partners
Major Shareholders andShareholding Ratios

Main Banks

111,760,403 shares
135,413 million yen (consolidated)
211,223 million yen (consolidated)
March 31
1,879
Sony Computer Entertainment Inc.,
Nintendo Co., Ltd, and others
Yasuhiro Fukushima 21.13%
Fukushima Planning Co., Ltd. 8.73%
Sony Computer Entertainment Inc.
8.51%
The Master Trust Bank of Japan, Ltd.
(Trust Account) 7.67%
Masashi Miyamoto 7.05%
Sumitomo Mitsui Banking Corporation
Mizuho Corporate Bank, Ltd
The Bank of Tokyo Mitsubishi UFJ Ltd.
The Shikoku Bank, Ltd.

TBD
TBD
TBD
March 31TBD
TBD
The Company

100%

TBD

The Transferor Company’s Business Results of the recent 3 years (consolidated)
Fiscal Year ended
Net Sales (¥ million)
Operating Income (¥ million)
Ordinary Income (¥ million)
Net Income (¥ million)
Net Income per share (¥)
Dividend per share (¥)
Net Assets per share (¥)

March 2005
73,864
26,43825,901
14,932135.6360.00
988.19March 2006
124,473
15,47015,547
17,076
154.6530.00
1,094.50

March 2007
163,472
25,916
26,241
11,619105.0635.00
1,168.91

4. Outline of Businesses to be Split
Games (Offline), Games (Online), Mobile Phone Content, Publication, and Others.
Operating results, items and values of assets and liabilities pertaining to the businesses tobe split have not been determined at this point.
5. Post‐Split Status of the Company as a Listed Company
Corporate Name
Major Businesses
Address of Headquarters
Name and Title of Representative
Common Stock
Net Assets
Total Assets
Fiscal Year End
Accounting Method

SQUARE ENIX HOLDINGS CO., LTD. (planned)
Management of group companies as a pure holding company
3‐22‐7, Yoyogi, Shibuya‐ku, Tokyo
Yoichi Wada
President and Representative Director
9,290 million yen
TBDTBDMarch 31
Because the Company Split will cover transactions undercommon control in the categories of corporate integral
accounting, it will not generate any business goodwill.

Forecasts
The Company will continue to be a listed company after the implementation of the pureholding system, and serve a number of functions such as consistent and flexible group
strategy planning, optimal allocation of business resources among group companies, andmonitoring of subsidiaries’ execution of operations. The Company will develop a strategicand transparent management organization to maximize the corporate value of the group.
Since the Company Split will be implemented to establish a wholly‐owned subsidiary of
the Company through the Incorporation‐type Company Split method, impact of theCompany Split on the Company’s consolidated business results and consolidated financialconditions is expected to be insignificant.
After the Company becomes a pure holding company, its revenue sources will bedividends received from subsidiaries, group management fees, and so forth.

TheCompany’s operating costs will be primarily related to functions as a pure holdingcompany.
Post‐split business estimates for the Company will be released upon ascertainment.

6. Post‐ Split Company Group Structure[Current Structure]
SQUARE ENIX CO., LTD

U.S. Holding Company
U.S. subsidiaries
European Subsidiary
Chinese Subsidiary
TAITO CORPORATIONTAITO subsidiaries
Other subsidiaries and affiliates[Post‐ Split Structure]
SQUARE ENIX HOLDINGS CO., LTD
SQUARE ENIX CO., LTD
Subsidiaries
U.S. Holding Company
U.S. subsidiaries
European Subsidiary
Chinese Subsidiary
TAITO CORPORATIONTAITO subsidiaries
Other subsidiaries and affiliates