DNP and FLN Launch Community Currency and Loyalty Point Support Service

Dai Nippon Printing Co., Ltd. (DNP) in conjunction with Future Link NetworkCo., Ltd. (FLN), will launch a support service to implement community currencyand loyalty points promoted by local authorities and shopping centers.

[Background]

In recent years, local authorities, companies and shopping centers throughoutJapan have looked to expand the use, and improve the convenience, of communitycurrencies and loyalty points systems with a view to regional revitalizationand rejuvenation. At the same time, there has also been an expansion in theuse of regional smart cards to store digitized premium gift certificates (issuedby local authorities to boost the local consumption) and public-private partnershippoints granted in line with volunteer, and /or health and eco-related activities.

In this latest development, DNP will combine forces with FLN that operatedregional information portal sites at 310 municipalities throughout Japan asof January, 2016. Together we will launch a service to support regional revitalization,using regional information portals, community currencies and loyalty points.We also aim to rejuvenate industry and shopping areas within specific regionalareas through the use of regional information portal sites and community currencies.Our two companies will also support communication within communities and activitiessuch as volunteering, by linking community currency activities to those informationportal sites, bringing the regions and consumers together as a result.

[New Service]

- DNP and FLN

Under this new support service, DNP will be responsible for providing paymentterminals and the cloud management system, along with the development of newservices linked to that system. FLN will be responsible for sales of the serviceto each region, and the management of an operations center. Collaboration betweenFLN, which maintains a track record in operating community currencies and regionally-basedloyalty points systems, and DNP, which has strengths in the development andoperation of high security payment services, will reduce the workload for localauthorities and companies in an efficient manner. And by linking community currenciesand loyalty points systems to regional information portal sites, it will alsobe possible to improve the quality of local services.

-  Thin-client smartphone payment terminals

Retail outlets offering community currencies and regionally-based loyaltypoints services will use thin-client smartphone payment terminals developedby DNP. By utilizing a user interface that reduces functions of terminals totheir minimum for ease of use, and realizing the increased efficiency of centralizedterminal management and service settings on the server side, it is possibleto reduce the workload of those retail outlets that adopt the payment terminals.At the same time, this terminal can be used both indoors and out, as long asit is within communications distance, making it possible to use at outdoor events.

- FeliCa Pocket

Consumers can also use a regionally-based smart card that integrates FeliCaPocket functions to facilitate the use of multiple services, such as communitycurrencies and loyalty point services, as well as regional contribution-basedvolunteer activity points with a single card. Based on the high level securityprovided by encryption keys that manage each service on an individual basis,FeliCa Pocket makes it possible to add or remove services even after the cardhas been issued.

[Looking Ahead]

- DNP and FLN

The full launch of this new service is planned for July 2016, following fielddemonstrations by DNP and FLN. DNP will also deploy this new service by supportingregional companies involved in the issue of premium gift certificates and electricpower deregulation activities, aiming for sales of approximately 4.0 billionyen in the 5-year period from FY 2016.

* FeliCa® is a contactless card technology format developed by SonyCorporation.

* FeliCa® and FeliCa Pocket® are registered trademarks of Sony Corporation.

* Product prices, specification and service contents mentioned in this newsrelease are current as of the date of publication. They may be changed at anytime without notice.