Easy-to-use Internet

MELCO INC.
BUSINESS REPORT
2002
as an Internet solution provider

MELCO INC.

Strategy[ Directionality of our company ]An Internet solutions provider
surmounting the challenges ofa rapidly changing environment

President and CEO Makoto Maki

The Internet is assuming an even greater role in society
In recent years, the Internet has become increasingly

offices. New Internet services using wireless LAN are

popular and familiar. It has become common in offices, aswell as homes. Electronic mail is widely used as the next

now being offered in railway stations, restaurants and so on
serving the general public.

most common means of communication after telephones
and fax machines. Faster telecommunication lines andIn this context, not only has effective Internet use
become more and more essential to conducting businesslower user service charges are further broadening the user

activities, but also as a means of communication and abase and making possible new functions such as transmission of moving images.

source of information it is also bringing about significant
changes in individual life styles.

Internet use is not limited to homes and private offices, but
is becoming progressively more common in institutional set-

As time and place limitations decrease, society is speeding
up and we will soon have a society in which we can utilizetings such as educational facilities and government

necessary data wherever and whenever we need it.

Responding promptly to sudden changes in the business environment

1

In the Internet-related market, the use of broadband

quencies) is spreading rapidly, and is attracting attention as(high-speed Internet lines comprising a wide band of fre-a new market with vitality. For some time, we have been

paying close attention to this field and proceeding with athrough the synergistic effects of simplified organization,changeover to reallocate corporate resources from traditional
enterprises such as memory and storage to preponderantly

improved efficiency of operations throughout the wholegroup, consolidation of business activities, cost reduc-internet-related enterprises.

tion, expenditure reduction and so on, we are in theOn the other hand, severe economic conditions havecontinued in Japan, while in the IT industry to which we areprocess of strengthening our competitiveness and profitability to create a corporate structure that can increase

related, product prices have fallen due to an overstock of
products and intensified competition brought about by the

profits even in a deflationary economy.
In so doing we have been able to create a base for our busi-

global decrease in demand for personal computers. For
these reasons, sales returns from products concerned withness structure which combines the stable profitability of traditional enterprises such as memory and storage with themature areas such as memory and storage have decreased

growth of internet-related enterprises.

drastically, and we showed a deficit in our interim
account settlement for year for the first time since its

Through this profit structure reformation, we havelearned the important lesson that we can overcome any

founding.
To deal with this severe economic environment, we havedifficulty if we respond adequately, promptly and enthusiastically to severe business climates and market changes,

staked its survival in the industry on the implementation ofwhich may also occur in the future.

wide-sweeping reform of the company structure. At present,

Contributing to the development of a networking society
In the Internet-related field, which continues to growrapidly, wireless LAN products are attracting attention asis necessary to ensure safety and privacy when data istransmitted, and to broaden the range of places where

broadband becomes more widespread. For some time welaptop computers can be used away from the office or

have been suggesting that wireless LAN is convenient
not merely as a wireless network device, but as a newhome.
It is the creed of us to meet the concrete needs of clients inmethod for utilizing the Internet. We are confident that
our approach in this area has been at least partly responsible

the products we create. Thus, we shall continue to put
forward the necessary technologies and functions, in thefor the fact that the diffusion rate of wireless LAN in
Japan is at a high level by global standards. We believe thatform of new products and services, to enable clients toaccess data anywhere.

from now on the Internet will assume an even greater role in

By contributing to the formation of a networking society associety. Business people will carry around laptop computers with the ability to access data from their offices

an Internet Solution Provider, we will strive even harder toraise the enterprise value of the MELCO INC. GROUP

anytime and anywhere. To bring such a society to reality, it

as a whole.

2

Eye

[ Tomorrow's society ]Steps towards an Internet society …
People working anywhere in the same way as they
do in their office
A society where you can use networks anywhere
Broadband (high-speed fixed price internet line) was

social phenomena.

rapidly popularized in 2001. By actualizing high-speed

However, is it enough simply to connect to the Internet? Istransmission and a fixed charge system, broadband madepossible new functions such as TV telephones and theit not true that the information people want to accessmost is the personal data in their own offices? It istransmission of moving images. It also had the advantage ofbeing able to be connected to more than one computer at

impossible to carry all this data around. For example,
when encountering unexpected questions or request alter-

any given time without any extra charge. Thanks to theations (concerning design specifications, delivery dates,

spread of broadband, wireless LAN came into the limelightas an effective solution for cutting down on the work andetc.) during a visit to a client, think of how much you
could improve customer service if it were possible tocost associated with wire connections.
Due to the increase of wireless LAN usage, new services

check your office data on the spot and respond accordingly. Even in remote destinations or on the move, you

using wireless LAN have become available throughout

could enjoy the same informational environment as you

Japan. Internet lines have been made available for freepublic use, first in hotels and airport lobbies, and then inhave in your office, and thus work much more efficiently.
A time is coming, when people will be able to use networks

public spaces such as railway stations, restaurants andcoffee shops. We might think of this as a grass-roots

anywhere in the world.

What is needed in order that anyone, anywhere, can use the Internet

3

When it becomes possible to use wireless LAN innecessary to verify that the receiver is qualified (company

homes, offices, and public places, it will be necessary tomember) to access the data, and data will need to be

standardize all usage. To this end, many services offered inpublic places will require users to use an approved wirelessencrypted so that it cannot be easily read by an eavesdropper. Technologies concerning the aforementioned are

LAN card that meets global standards.
Another important point is the safety concern when

also making rapid progress.
Wireless LAN is not the only area that will require solu-

accessing confidential company data. For this it will betions. With the increase in volume of data and number ofusers, networking equipment overall will continue toarchive these items.

advance in function and speed. For business people whocarry laptop computers around with them, there will be a

By providing the advanced technologies required tomeet the demands of this era, in the form of products andneed for peripheral devices that can be used in places

services that anyone can use, we will contribute on anwith no electrical outlets. Moreover, the use of moving
images such as movies and videos will necessitate theongoing basis to the development of a networking society inwhich the Internet can be utilized anywhere.

provision of devices with large enough memories to

An society in which the Internet
can be utilized easily anywhere
Company
CompanBranch office
BranchHotel

SaleofficeAirport
Bro

ad

ba

Restaurantnd

INTERNET
nd

Bro

dba

Broa

Broadba

Overseas

Station/
Train

adb

and

nd

Public area
PublicUnderground
shoppingmall

Apartment

Publicfacility

House

Home

An environment is taking form in which the Internet can be utilized easily in public areas such as stations and restaurants,
not to mention businesses and households. Wireless LAN, communications technology that preserves safety, and standardized communication designations that can be used anywhere in the world are making the networking society more convenient and comfortable. A society where we can utilize the Internet easily anytime, anywhere, is bound to enrich our lives.
*VPN (Virtual Private Network): Security technology that enables secure communication between terminals by connecting mutually as in dedicated lines.

4Topics[ Topics ]We offer total solutions to meet all the needs of theInternet society
Strengthening enterprises that target corporations
Expansion of networking products and services
To promote efficiency in business, corporate network use iscontinuously diversifying. Corporations, which are becomingtransmission environments becoming widespread, constructing safe and highly convenient networks will enable

more sophisticated, large-scale and complex now require
equipment and systems that make smoother, more efficientbusiness people to work more efficiently. We have createdseveral other products aimed at the corporate market

operations possible. With these corporate needs as our new
target, we will continue to strengthen our networking-related

including the high-speed, highly functional Layer 3 Switch"LSM-L3-24" which reduces loads on networks, and theenterprises.

VoIP (Voice over Internet Protocol) Gateway "VG-

Targeting corporations, we are also upgrading and expanding
our range of products with enhanced control functions andST1000" which greatly reduces the cost of Internet telephony.
As part of our services for corporations, we also have asecurity, as well as LAN-related products for realizing
higher efficiency at lower costs. In the field of wirelessreliable support system offering a number of network
maintenance support services such as "send-back mainte-

LAN, a technology that is proliterating we have launched thenance service", "delivery maintenance service (delivery ofIntelligent Access Point "AirStation Pro WLM-L11G".
Along with greatly enhanced control functions, security

courtesy devices)", "on-site maintenance service (dispatch
repair service)", and "CRS (Configuration Restorationand durability, this product also carries the global standard WiFi (Wireless Fidelity) certification. Because Wi-Fi is a stan-Service)".
We will continue to target the expanding corporate market

dard specification that guarantees wireless LAN compati-with quality product lineups and total solutions including

bility, it facilitates mutual communication among certified
products by various manufacturers. Currently with fublic

support systems.

Intelligent Access Point

5

Layer 3 Switch

VoIP Gateway

For the convenience of ourclients, we have launched acordless hard disk

2002 BCN Awards in 8 categories,
comprising all categories related
to networking

Today's information environment is changing so that people
can access the internet easily in public areas such as restau-

In the "2002 BCN Awards" sponsored by the ComputerNews, Inc. we received the top prizes in eight categories.

rants and railway stations. Working styles are changing forbusiness people, who carry laptop computers and work

These prizes are awarded to the firms whose products were theleading sellers in the larger shops of Tokyo, Osaka andaway from the office. To this end a portable hard disk
"DUB-P" that is easier to use in such an environment has been

Nagoya during 2001. We had the honor of winning in all eightcategories related to LAN networking.

launched by us, and has proved to be very popular.

To be more precise, the eight categories are: LANThis product, which does not require the AC electricalsource that was necessary until now, can be operated simply

Adapter, hubs, routers, printer servers, modems, memory,internal hard disks, and CPU accelerators. We are very

by connecting it to the USB port of a laptop computer. It has
excellent mobility due to its small size without the con-grateful for this result, which we perceive to demonstrate
our customers' high evaluation of the functionality and relia-straint of electrical cables. Users can work wherever theybility of our BUFFALO products. With "Easy-to-use

choose.
This design concept grew out of a thorough study of how toInternet" as our corporate motto, we shall continue to focus onconvenience for our clients, and to provide products thatmaximize ease of use for clients, the results of which arereflected in the product. We continuously strive to put ever-meet every need.
Othersimproving products on the market that do not emphasize
MELCO
21.9%

maker-related functional aspects alone, but rather aim for
greater customer convenience.

Others50.7%
Memoryproducts

18.1%

Others46.8%（router）*USB: Universal Serial Bus
Common specification for connecting peripheral devices. Can beplugged or unplugged without turning off power.

8.1%
MELCO
10.7%
48.8%

I-O Data
I-O Data
32.4%

9.3%

（memory module）

Networkproducts

Logitec

Others
18.8%

MELCO
27.9%
14.1%
11.2%

PlanexCoregaNTT-ME

Storageproducts（internal HDD）

Princeton

8.9%
Corega
28.9%

MELCO
43.4%
Networkproducts（LAN Adapter）*Share of units sold in the mass retailer market between January andDecember in the year of 2001. (Computer News, Inc.)

6

Outline[ Summary of business ]With "Easy-to-use Internet" as our motto, we will suggest a
comfortable environment that everyone can use conveniently.
Consolidated sales per product for the term between April 2001 and March 2002.
Other
MemoryInternet setup/installation on-call service(BUFFALO Service Alliance)

Memory module

Liquid crystal
display
Other

7.3%
MemoryFlash memory

26.7%
Network

31.5%

Component
ratio of consolidated
sales for the March
2002 term
Storage

34.5%

CD-RW drive
Wireless LAN
DVD-RAM/R
drive

Network
7

Network
cameraStorageGroup Companies[ MELCO INC.Group ]*1 BUFFALO TECHNOLOGY (U.S.A.), INC. has been liquidated as of December 31, 2001.
*2 The ratio of shareholdings for TechWorks (Delaware), Inc. increased from 98.4% to 100% as of December 18, 2001.
The company was renamed BUFFALO TECHNOLOGY (USA), INC. as of February 28, 2002.
*3 The capital was increased to US $ 5.728 million for BUFFALO TECHNOLOGY UK LIMITED. on December 18, 2001.

MELCO INC.Group Affiliation Chart（Consolidated subsidiaries）●Sales company
Products

Products

CFD SALES INC.
(Capital : ￥ 98 million Ratio of shareholdings : 100%)

Products

Customers in Japan

Japan

Products
TaiwanProducts●Manufacturing and sales company

Parts(Capital : TWN $ 100 million Ratio of shareholdings : 100%)BUFFALO TECHNOLOGY (TAIWAN)INC.

Products

EUROPE
U.S.A.
Overseas customers

MELCO INC.

JAPANTAIWANU.S.A. *1
Products●Sales and Manufacturing company *2

Parts(Capital : US $ 6,000 Ratio of shareholdings : 100%)BUFFALO TECHNOLOGY(USA),INC.

Products

Europe●Sales company *3
Products

Products

BUFFALO TECHNOLOGY UK LIMITED(Capital : US $ 5.728 million Ratio of shareholdings : 100%)●Manufacturing company
Parts

BUFFALO TECHNOLOGY IRELAND LIMITED(Capital : IR£ 356,524 Ratio of shareholdings : 100%)

Other operations in Japan●Distribution company (Packing and shipping company)●Computer technology school

BUFFALO LOGISTICS INC.

MELCO TECHNO SCHOOL INC.

MELCO FINANCE INC.

(Capital : ￥ 70 million Ratio of shareholdings : 100%)(Capital : ￥ 20 million Ratio of shareholdings : 100%)(Capital : ￥ 20 million Ratio of shareholdings : 100%)●Securities management company

8

Financial Report[ Consolidated Statement ]■Consolidated sales
100,000(unit:¥million)

88,86579,42475,9006,886

80,00066,121

8,602

59,90760,00069,967

Others
3,900

19,047
5,125

10,980

Network

10,586
8,625

26,0005,455

22,05127,011

5,358

40,00029,751
24,292

20,770Storage
24,00024,11820,00025,15435,92030,09025,787

Memory023rd term(’98/3)

24th term(’99/3)(unit:¥million)(unit:%)

5,000

4,000

25th term(’00/3)

26th term(’01/3)■Consolidated net
income and % of sales■Consolidated ordinary
income and % of sales(unit:¥million)

25

2,500

20

2,000

(unit:%)

10

15(unit:%)

16

8

1,868

30,0001,500

27,45420,000

2,100

2,000

10

1,000

5

500

0

0

944

1,448
832
2.5

2.8

1.2
0
24th term 25th term 26th term 27th term 28th term(’99/3) (’00/3) (’01/3) (’02/3) (’03/3 projected)

12

337
0.5

3.5

10,0001.1 1.2

8

7.1

4

869

2.4
4.4

26,514 26,430

6

1,200

2,252

9

(unit:¥million)

40,00025,4033,000

2.2

27th term(’02/3) 28th term(’03/3 projected)■Consolidated shareholder'sequity and return on equity (ROE)

3,473

1,000

22,00018,671

1.6

24th term 25th term 26th term 27th term 28th term(’99/3) (’00/3) (’01/3) (’02/3) (’03/3 projected)

2

0

3.3

4

1.3
0
24th term(’99/3)25th term(’00/3)26th term(’01/3)27th term(’02/3)0

■Consolidated balance sheet
Fiscal year

2002

(unit:¥million)(Assets)
Current assets
Tangible fixed assets
Intangible fixed assets
Investments, etc.
Total Fixed assets
Total assets(Liabilities)

28,022
2,777
156
11,121
14,05542,07736,429
2,938
222
3,329
6,490
42,919Current liabilities
Long-term liabilities
Total liabilities(Capital)

14,968678
15,646

15,715689
16,405

CapitalCapital reserve
Consolidated surplus
Balance of other profits on securities
Exchange adjustment
Treasury stock
Total capital
Total liabilities and capital

6,400
7,593
12,74170▲160▲213
26,43042,0776,400
7,593
12,801
72▲285▲66
26,51442,919■Consolidated statement of surplus
Fiscal year
Item
Consolidated surplus opening balance
Reduction of consolidated surplus
Net income
Consolidated surplus closing balance

Fiscal year

2001

as of March 31, 2002 as of March 31, 2001

Item

■Consolidated statement of income(unit:¥million)

2002

2001

(April 1, 2001 to
March 31, 2002)(April 1, 2000 to
March 31, 2001)

12,801929
869
12,741

13,6181,760
944
12,801

Item
Sales
Cost of sales
Selling, general and administrative expenses

Operating income
Non-operating income
Non-operating expenses
Ordinary income
Extraordinary income
Extraordinary loss
Current income before taxes and other adjustments
Corporation, resident and enterprise taxes

Adjustment for corporation tax, etc.
Minority loss (added)
Current net income

2001(April 1, 2001 to
March 31, 2002)(April 1, 2000 to
March 31, 2001)

69,967
61,389
7,922
655
421
244
832
54
222
664
397
▲603
−
869

88,86577,723
9,409
1,732
1,160
640
2,252
37
503
1,785
952
▲90
19
944

■Consolidated cash flow statement
Fiscal year
Item
Operating activity cash flow
Investment activity cash flow
Financial activity cash flow
Balance of cash/cash-equivalent conversions
Increase of cash/cash-equivalents
Cash/cash-equivalent opening balance
Cash/cash-equivalent closing balance(unit:¥million)

2002(unit:¥million)

2002

2001

(April 1, 2001 to
March 31, 2002)(April 1, 2000 to
March 31, 2001)

3,422▲7,444▲765
43▲4,744
6,775
2,030▲3,208▲168▲1,902
126▲5,153
11,9286,775

10

Financial Report[ Unconsolidated Statement ]■Sales100,000(unit:¥million)

80,00060,00074,60871,561
59,391

54,334

4,249

5,282

2,901
25,200

8,094
5,357

5,315
5,111

Network

21,13827,307

19,439Others
2,600

18,343

10,55340,00070,70063,031

24,12523,676Storage

22,90022,36320,00028,417

24,46822,26223rd term(’98/3)

24th term(’99/3)

Memory27,88820,00016,6280
25th term(’00/3)

26th term(’01/3)■Ordinary income and % of
sales■Net income and % of
sales

(unit:¥million)(unit:¥million)(unit:%)

25

5,000

■Shareholder's equity andreturn on equity (ROE)(unit:%)

10

2,500

27th term(’02/3) 28th term(’03/3 projected)(unit:¥million)(unit:%)

16

40,000

2,009
8

2,000
20

4,000

3,540

15

3,000

1,000

2,000

10

1,000

2.3

2.8

0
24th term 25th term 26th term 27th term 28th term(’99/3) (’00/3) (’01/3) (’02/3) (’03/3 projected)

11

1.7

10,000

2.1

1.6

0

2.8

0

8

3.9

4

2
0

0

0

5
-500

12

5.5

4

-0.7

1,463
4.9 4.5
4.0

500

26,611
7.3

20,000

1,100

1,026

2,390
2,000

28,310 28,166
26,365

6

1,500

3,351

30,000

1,544

-409

-2

-1.5
-10,000-4-4-1,00024th term 25th term 26th term 27th term 28th term(’99/3) (’00/3) (’01/3) (’02/3) (’03/3 projected)

24th term(’99/3)25th term(’00/3)26th term(’01/3)27th term(’02/3)

■Balance sheet
Fiscal year

(unit:¥million)

2002(Assets)
Current assets
Tangible fixed assets
Intangible assets
Investments, etc.
Total Fixed assets
Total assets(Liabilities)

37,021
2,027
139
3,215
5,382
42,404

34,059
2,146
187
6,311
8,644
42,704Current liabilities
Long-term liabilities
Total liabilities(Capital)

15,163629
15,793

13,905633
14,538

CapitalLegal reserve
Retained earnings
Balance of other profits on securities
Treasury stock
Total capital
Total liabilities and capital

6,400
9,193
11,16170▲213
26,61142,404■Profit appropriation
Fiscal year
Item
Unappropriated profit for current term
Disposition of discretionary reserves
Disposition of special reserves
Total
Dividends
Executive bonuses
Total
Surplus carried over to next term

Fiscal year

2001

(As of March 31, 2002) (As of March 31, 2001)

Item■Statement of income

6,400
9,193
12,50072−
28,16642,704

Item
Sales
Cost of sales
Selling, general and administrative expenses

Operating income
Non-operating income
Non-operating expenses
Ordinary income
Extraordinary income
Extraordinary loss
Current income before taxes
Corporation, resident and enterprise taxes

Adjustment for corporation tax, etc.
Net income
Profit carried over from previous term
Earnings allocated to retirement of treasury stock

Interim dividends
Unappropriated profit for current term

(unit:¥million)

2002

2001

(April 1, 2001 to
March 31, 2002)(April 1, 2000 to
March 31, 2001)

63,031
55,773
6,147
1,110
529
176
1,463
56
2,506
▲986
333
▲909
▲409
5,301
▲569
160
4,161

74,60865,611
6,889
2,107
1,684
440
3,351
44
1,029
2,367
849
▲27
1,544
5,508
▲1,358193
5,500(unit:¥million)

2002

2001

(April 1, 2001 to
March 31, 2002)(April 1, 2000 to
March 31, 2001)

4,161

5,500

7,000
11,161160(¥6/share)

−
5,500
189
(¥7/share)−160
11,001

10
199
5,301

Notes:
1) Interim dividends ¥193,648,966 in total (¥7/common share) were
paid on December 1, 2000.
2) Interim dividends ¥160,846,590 in total (¥6/common share) were
paid on December 3, 2001.

12

Company Data

[ Company Profile/Investor Information]

Company Profile (As of March 31, 2002)

Board of Directors (As of June 27, 2002)

Company Name: MELCO INC.

President and CEO Makoto Maki

Headquarters:

11-50, Ohsu 4-chome, Naka-ku, Nagoya, Aichi Prefecture, Japan

Senior Managing Director Kuniaki Saiki

Founded:May 1, 1975

Director

Hiromi Maki

Incorporated:

August 5, 1978

Director

Hiromichi Maki

Director

Harumi Maekawa

Director

Seishi Toyooka

Director

Takayuki Nishioka

Director

Hidetoshi Yamaguchi

President and CEO: Makoto Maki
Capital:¥6.4 billion

Sales:¥69.967 billion consolidated¥63.031 billion unconsolidated(at end of March 2002)

Business content: Development, manufacture and sales of Internet
equipment and related services

Senior Corporate Auditor Yozo Ueda
Corporate Auditor

Toshio Nishikawa

No. of employees: 656 consolidated, 388 unconsolidated

Corporate Auditor

Yuzuru Kawashima

Group affiliates: 8 companies (4 in Japan and 4 overseas)

Corporate Auditor

Iwao Tsusaka

Banks:

UFJ, Nagoya, Iyo, Tokyo-Mitsubishi, UFJ Trust Bank

Investor Information(As of March 31,2002)
Accounts closed:

March 31

Scheduled shareholder's meeting: June
Dates to determine stock ownership: Shareholders entitled to voteMarch 31
Shareholders entitled to year-end dividend
March 31
Shareholders entitled to interim dividend
September 30
Listed Stock Exchanges: First Section of Tokyo Stock Exchange andFirst Section of Nagoya Stock Exchange
Stock code:

6913

Number of shares issued: 26,841,136
Number of shareholders: 16,333
Number of shares per unit: 100

13

Newspaper with
notice to shareholders: Nihon Keizai Shimbun
Transfer agent:

UFJ Trust Bank Limited
4-3, Marunouchi 1-chome,
Chiyoda-ku, Tokyo

Handling office:

UFJ Trust Bank Limited
Security Agent Department
10-11, Higashi-suna, 7-chome,
Koto-ku, Tokyo 137-8081
Tel: 81-3-5683-5111

Managing underwriters: (main) Nomura Securities(others) Daiwa Securities SMBC
Mizuho Investors Securities
Nikko Cordial Securities

Evolution of the MELCO INC. GROUP

History

Business/Others
1978

Incorporated for the purpose of manufacturing and selling audio equipment Aug

Aug Began marketing a string-driven turntable

1980
Opened Tokyo Branch Office (now the Tokyo Head Office) Oct
Established BUFFALO LOGISTICS INC. Sep

1981
1982
1986
1988

Jul Entered the personal computer peripherals market in earnest
Nov Began marketing an internal printer buffer
Oct Began marketing Japan’s first EMS board

1990

1991
Opened Osaka Sales Office (now the Osaka Branch Office) Sep
Registered with JASDAQ Oct
1992
Jul Began marketing CPU accelerator products
Opened High-Tech Center Jan
Aug Began marketing LAN products
Established BAPILU PRODUCTS INC. Jun
1993
May Began marketing window accelerators;[now BUFFALO TECHNOLOGY (TAIWAN) INC.]
entered the multimedia market in earnest
Oct Received Prize for Excellence at PCB Technology Awards
Feb Began marketing hard disks; shifted emphasis to1994
manufacture of computer peripheral devices
Listed in second section of Nagoya Stock Exchange Jan
Sep Obtained ISO 9001 certification
Listed in second section of Tokyo Stock Exchange Aug
Nov Began marketing DOS/V component PCs;
shifted emphasis from manufacture of computer
Opened agencies in Sendai and Fukuoka (now the Sendai and Fukuoka sales Offices) Dec
peripheral devices to manufacture of PC components
MELCO TECHNO SCHOOL INC. commenced operations at its computer technology school Jul
1996
Listed in the first sections of the Tokyo and Nagoya Stock Exchanges Sep
Oct Began marketing LCD monitors
Made CFD SALES INC. a subsidiary Oct
Introduced divisional organization Oct
1997
Made TechWorks (Delaware), Inc.(now BUFFALO TECHNOLOGY(USA),INC.) a subsidiary Jan
1998
Made TechWorks (UK) Limited and TechWorks (Ireland) Limited Dec(now BUFFALO TECHNOLOGY UK LIMITED. and BUFFALO TECHNOLOGY IRELAND LIMITED.)subsidiaries
Jan Entered the wireless LAN market; released "AIRCONNECT"1999
Nov Began marketing memory for Rambus devices
MELCO FINANCE INC. commenced operations in securities management and related areas Aug

1995

Apr Began marketing the wireless LAN "AirStation"2000 Oct
Received Good Design Award for AirStation wireless LAN
Developed worldwide standard specification of DDR memory for notebook computers

Opened BUFFALO Solution Square (formerly Akihabara Customer Support Center) Dec
Formed BUFFALO Service Alliance Jan
Established joint venture company, Digital Reuse Inc. Mar

2001 Jan Began Internet service business

2002

Obtained Environmental Management System ISO14001 Certification
Nov Obtained Good Design Awards for card reader and CD-RW drive

14

Easy-to-use Internet

MELCO INC.
11-50, Ohsu 4-chome, Naka-ku, Nagoya, 460-0011, Japan
Tel: 81-52-251-6891 FAX: 81-52-241-7979

http://www.melcoinc.co.jp/

Offices
Headquarters

Kamiya Bldg., 11-50, Ohsu 4-chome, Naka-ku, Nagoya, 460-0011, Japan

Tel:81-52-251-6891 Fax:81-52-241-7979

Tokyo Head Office

Fukuoka Bldg., 8-7, Yaesu 2-chome, Chuo-ku, Tokyo, 104-0028, Japan

Tel:81-3-3242-7777 Fax:81-3-5203-8551■Subsidiaries Japan
CFD SALES INC.

Kamiya Bldg., 11-50, Ohsu 4-chome, Naka-ku, Nagoya, 460-0011, Japan

Tel:81-52-261-7771 Fax:81-52-261-7775

BUFFALO LOGISTICS INC.

1-3, Mutsuno 2-chome, Atsuta-ku, Nagoya, 456-0023, Japan

Tel:81-52-883-3035 Fax:81-52-883-3042

MELCO TECHNO SCHOOL INC.

15, Shibata hondori 4-chome, Minami-ku, Nagoya, 457-8520, Japan

Tel:81-52-619-7727 Fax:81-52-619-7759

MELCO FINANCE INC.

Kamiya Bldg., 11-50, Ohsu 4-chome, Naka-ku, Nagoya, 460-0011, Japan

Tel:81-52-251-6891 Fax:81-52-241-7979■Subsidiaries Overseas
BUFFALO TECHNOLOGY (TAIWAN) INC.

4F, NO.18, LANE609, SEC.5, CHUNG HSIN RD., SANCHUNG CITY, TAIPEI HSIEN, TAIWAN

Tel:886-2-2999-9860 Fax:886-2-2999-2264

BUFFALO TECHNOLOGY (USA) , INC.

4030 West Braker Lane, Suite 350, Austin, TEXAS 78759-5319 U.S.A.

Tel:1-512-794-8533 Fax:1-512-794-8606

BUFFALO TECHNOLOGY UK LIMITED

176 Buckingham Avenue, Slough, Berkshire SL1 4RD, United Kingdom

Tel:44-1753-555-000 Fax:44-1753-535-420

BUFFALO TECHNOLOGY IRELAND LIMITED

Unit 14B, Shannon Industrial Estate, Shannon, Co. Clare Ireland

Tel:353-61-474711

This booklet was made from recycled paper.

Fax:353-61-474770