This report shall explain the achievements of UNIJAPAN for fiscal year 2005.

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UNIJAPAN International Promotion Department Business Report for fiscal year 2005 On April 1 st, 2005 The Association for the Diffusion of Japanese Film Abroad (UniJapan Film) and Tokyo International Foundation for Promotion of Screen Image Culture joint to form a new organization Japan Association for the Promotion of Moving Images (UNIJAPAN). At the Board of Directors Meeting held on June 30 th, 2006, the Association for the first time jointly reported the achievements of Tokyo International Film Festival (TIFF) and support programs for international promotion so far managed by UniJapan Film. This report shall explain the achievements of UNIJAPAN for fiscal year 2005. I Support Programs for International Promotion of Japanese Film Support Program for International Sales Setting up the Promotional stands Japan Pavilion and Japan Booth Under Support Program for International Sales initiated by the Agency of Cultural Affairs (Bunka-cho), UNIJAPAN set up promotional stands Japan Booth and Japan Pavilion, as a ground for the promotion of Japanese film abroad. In year 2005 this program was managed in cooperation with the Ministry of Economy, Industry and Trade (METI), the Bunka-cho, present Japanese Embassies, Japan Foundation, JETRO and UNIJAPAN. The basic developments of this project for the fiscal year 2005 were: 1 The opening of Japan Pavilion at Cannes Film Festival (May 11-22, 2005) Setting up of Japan Pavilion at the International Village as information and exchange centre of Japanese film and setting up of Japan booth in film market as a ground for sales (used jointly by four sales companies). The organization of press meeting for the signing of Japan-French Cinematographic Cooperation Memorandum. In the meeting participated Mr. Yosano Kaoru, present Chairman, Mr. Kadokawa Tsuguhiko, Chairman of Tokyo International Film Festival, and Mr. Watanabe Osamu, the Director of JETRO. Organizers: METI, Bunka-cho, JETRO and UNIJAPAN. Expenses: 17,000,000 yen 1

2 Venice Film Festival Japan Reception (Sep 4, 2005) The opening of Japan Reception as a commemoration of the Screening of Japanese Films (34 films) at Venice Film Festival Organizers: Bunka-cho, Japanese Embassy in Italy, UNIJAPAN Expenses: 3,700,000 yen 3 Toronto Film Festival Asia Desk ( Sep. 8-17, 2005) Activities Inside Toronto Film Festival Industry Centre, opened Asia Desk in collaboration with Korea Film Council (KOFIC) Organized Asia Reception at Japan Foundation s Japanese Culture Centre in Toronto Organizers: Bunka-cho, Japan Foundation s Japanese Culture Centre Toronto, UNIJAPAN Expenses: 3,700,000 yen 4 Pusan Film Festival Japan Booth (Oct. 11-13, 2005) Set up a promotional stand Japan Booth Held Japan s Reception with a main aim to introduce VIPO Under the sponsorship of Bunka-cho, organized the press meeting for Seoul-Japan Film Festival Organizers: Bunka-cho, the Japanese Embassy in Korea, VIPO, UNIJAPAN. Expenses: 9,700,000 yen 5 Berlin Film Festival Japan Pavilion (Feb. 9-20, 2006) Activities Set up a promotional stand Japan Pavilion inside the film market ( a joint utility of 10 sales companies) Organized Japan Reception Organizers: METI, Bunka-cho, the Japanese Embassy in Germany, JETRO, UNIJAPAN Expenses: 8,100,000 yen 6 Hong Kong Film Festival Japan Pavilion (Mar. 20-23, 2006) 2

Opening of Japan Pavilion inside film market With the sponsorship from Hong Kong, organized Japan Reception, in which 11 companies participated Provided assistance to Japan Premium, TIFFCOM Promotion Event sponsored by VIPO Organizers: METI, Bunka-cho, JETRO, VIPO, UNIJAPAN. Expenses: 1,200,000 yen II Support program Participation at Film Festivals Same as the project I, this program is supported by Bunka-cho. It aims at providing subsides for Japanese films and Japanese film producers participating at international film markets and film festivals. 1 The subsides of the program cover: 1 the production of foreign language subtitles 2 overseas travel expenses 3 the production of the promoting material 2 The frame of the subsidies is divided into: 1the general frame for participating in film markets and film festivals 2the priority frame for the works participating in major film festivals (i.e. Cannes, Moscow, Karvoly Vary, Shanghai, Locarno, Venice, San Sebastian, Cairo, Berlin, Mardel Plata) 3 the special frame for the young filmmakers 3 The result of the program for the fiscal year 2005: 1 66 selected works ( selected from 247 applications) 2 The assistance amount fee: 33,810,603 yen III Publications and Database 1 The publication of a yearbook Japanese Film for international film markets Publication and distribution of a yearbook Japanese Film with the support of Bunka-cho (3000 copies). The published yearbook included: 3

1 The introduction of current Japanese works Introducing bilingually in Japanese and English 60 Japanese films officially presented in theaters from January to December, 2005. The works were selected by the Jury headed with Chairman Mr. Kawahara. The standards for the selection of the works were: the works ranking first in box office the works which obtained important award nationally the works invited to the important film festivals abroad 2 The announcement of Japanese Film Industry data for year 2005 The film industry data announced by Motion Picture Producers Association of Japan, Inc (Nihoneiga-seisakusha-renmei), covering the data of films with more than 1 billion yen box office, number of Japanese film releases, number of entries, average entrance fees, performing income, screen numbers, number of foreign film releases was translated into English and published. 3 The list of Japanese film industries Name of industry Film related organizations 31 Production companies 92 Animation production companies 24 Distribution companies 59 Production equipment and facilities 19 Film commissions 86 Film festivals 27 Film schools 17 Funds 5 Number above are the groups, industries, film commissions, schools which have confirmed the consent for the publishing 4 Others Apart from the above mentioned, the publication also included the data of 53 works officially presented in theaters during 2005, the list of works that won the Bunka-cho Film Award and that were supported by the same. 2 The distribution of the catalogue of latest Japanese films for overseas market New Cinema from Japan 4

A twice-a-year catalogue New Cinema from Japan started to be published in year 2003 as part of a joint project with Japan Foundation. Diversely from a yearbook Japanese Film, which introduces Japanese films officially presented in theatres during a year ahead, New Cinema from Japan introduces new Japanese films including those not officially presented. Publication: twice a year in February and September; in year 2005 published 4,000 copies The autumn publication of 2005 (September release) introduced 34 works presented at the world famous film festivals in the first part of the year The spring publication of 2006 (February release) introduced 50 Japanese films which participated in Berlin Film Festival and its market. Distribution: The publication was distributed at the film festivals in Cannes, Venice, Toronto, Pusan, Tokyo, American Film Market (AFM), Berlin, Hong Kong etc, and at film festivals and film markets at which UNIJAPAN and JETRO participated to Japanese Embassies and Japan Foundation offices overseas 3 Research Survey on International Co-production schemes With the support from Ministry of Economy, Trade and Industry, UNIJAPAN carried out a research study analyzing the systems for promotion of international film co-production abroad. From the results of this survey UNIJAPAN tried to grasp the guidelines for Japanese film producers who aim at co-production and thereafter, tried to propose the policy for broadening and for enabling more active role of Japanese film market internationally. The conclusions of the survey: 1The country and the industry overall needs to work on the networking with the foreign countries that provide international co-production agreements 2For furthering the international co-producing it is necessary to offer the information and to enhance the opportunities for producers matching. 3 Simultaneously, it is necessary to support the establishment of networking and project development which can access the international market. 4 The organizing of producers workshop at Berlin International Film Festival This workshop was carried out under the auspices of METI. 5

In order to promote international co-production, UNIJAPAN decided to open the workshop at Berlin Film Festival 2006, which would focus on Japanese film producers. With an aim to provide the space for presenting the film development, in this workshop UNIJAPAN gathered five producers and three lawyers from Entertainment Royals Network to participate as observers. At the same time, UNIJAPAN organized the lectures of producers and sales agents from abroad as well as hearings on the international market analysis of Japanese movies abroad. All the results from this workshop were summarized in the report book of the project. Date: Feb 11-13, 2006, three days Participants: Ogawa Shinji (Asmic Ace), Shii Yukiko (Kino), Toyama Tsuyoshi (100 m Film), Negishi Hiroyuki (Picnic), Morishige Akira (Satellite Theatre), Entertainment Lawyers Network (Shibata Miki, Yamanaka Masato, Wakebe Yusuke) Presentations of film projects, lectures, exchange meetings, visits to film festivals and film markets. IV Research and Development 1 The management of Japanese Film Website www.unijapan.org This project started in year 2003 under the auspice of Japan Keirin Association. In year 2005 the total amount of the organization budget was 6,808,216 yen and the support for this project was a half of this amount. The website includes the data covered in a yearbook Japanese Film and the contact list which is renewed twice a year, at the time of the closing of Tokyo International Film Festival and in March following year before the end of the fiscal year. Furthermore, to publicize the website, an advertisement was run in Variety and Screen publications for Berlin and Cannes International Film Festival. 2 The circulation of UniJapan News Every second week our organization sends out a newsletter UniJapan News to international departments of film companies and film producers who require the information on film festivals. The newsletter provides information on the opening of film festivals, entry information, and the information on the Japanese movies shown at the same festivals in the past so as to clarify the trends of Japanese films at international film festivals. Moreover, in order to make this kind of information accessible to everyone at any time, UNIJAPAN also updates the UniJapan News on 6

its website (www.unijapan.org). The number of the international film festivals presented in UniJapan News for year 2005 is given in the table below: Region The number of film festivals Europe 56 North America 44 Central Africa 2 Asia Pacific 20 Total 122 V Support Program of International Cooperation The conclusion of Japan-France Cinematographic Cooperation Memorandum and Asian Film Industry Network' As announced at The Meeting of Board Directors in June previous year, Japan-France Cinematographic Cooperation Memorandum was concluded between French CNC (National Centre of Cinematography) and UNIJAPAN. In the signing ceremony participated Mr. Yosano Kaoru, present Director of the organization, Mr. Kadokawa Tsuguhiko (Chairman of the Board of Directors) and Mr. Watanabe Osamu, the Director of JETRO. After the conclusion of the Memorandum, at the Tokyo International Film Festival held in October, UNIJAPAN organized the exchange meeting gathering Japanese film producers and French film producers. Simultaneously, at Pusan Film Festival held in October same year, The Asian Film Industry Network was established gathering the representatives from Japan, Korea, Thailand and Vietnam and the observers from Singapore and Hong Kong. As representatives of Japan, the Bunka-cho, VIPO, and UNIJAPAN participated. UNIJAPAN signed the contract on behalf of Japan. The change of personnel The Chairperson of the Board of Directors: Yasano Kaoru (resigned on Oct. 31 st, 2005; no chairperson decided after him), Nakamura Masaya (resigned March 27 th, 2006), Fujii Hiroki 7

(appointed on March 27 th, 2006), Sato Naoki (appointed March 27 th, 2006), Fukuda Keiji (appointed June 30 th, 2006), Yamauchi Hisashi (resigned), Katou Masato (appointed), Yanai Hiroshi (appointed). 8