Digital Garage Enters into a Capital and Business Alliance with Singapore-based LCO to Support Loyalty Program Businesses by Providing a Platform for International Travel Apps -Using Smartphone Apps to Promote Outbound and Inbound Marketing Solutions –

Tokyo, June 4, 2015 – Digital Garage, Inc. (TSE JASDAQ: 4819, DG) has entered into a capital and business alliance with LCO-Creation Singapore Pte. Ltd. (LCO). Through this investment in LCO, DG intends to strengthen its cooperative relationship with LCO and work jointly to provide a platform for international travel apps for loyalty programs in Japan. Loyalty programs will be able to deploy custom apps by adding a variety of information that meets their needs to the platform. These apps lead to a new business development and marketing opportunities for client programs which can provide their members on travel with a variety of services and information pertaining to sightseeing locations inside and outside of Japan such as tourist information, exclusive campaigns, offline maps, optional tours, and membership point services.

Through this capital and business alliance, DG and LCO will develop dedicated smartphone apps that fit the characteristics and services of the client loyalty programs and disseminate LCO’s abundant travel guide information (containing approximately 8,000 entries on 55 cities in 31 countries around the world) to the members, Japanese tourists, and foreign-based Japanese workers through the apps. In addition, the two parties will develop O2O (online to offline) models to increase users’ app usage and store visits while traveling abroad by offering promotional campaigns where users can receive exclusive preferential services and bonus points/mileage on sightseeing, shopping, and lodging offered at destinations with high traveler spending. As the number of incoming tourists expected to rise toward 2020 in Japan, the two parties have begun developing business models to provide tourist information owned by local governments in Japan to meet the increasing inbound demands.

DG provides a variety of solutions for activating and monetizing the usages of credit cards and e-money to its client loyalty/mileage programs. By taking advantage of its expertise nurtured over the years on card usage promotions in Japan and its global network for this joint effort, DG will support a wide range of marketing activities for client loyalty programs on a global scale.

Service Features
• Offline access to tourist information and search for local maps and directions in 55 cities in 31 countries
　 By installing this app, users can view approximately 8,000 entries of sightseeing guide information on 55 cities in 31 countries around the world. With the GPS functions on their smartphones, users can not only view maps, but also can locate their current positions and search for directions even when they are offline.

• Plan and offer member-exclusive promotions for individual cities
　 The programs that introduce these apps will be able to plan preferential services and contents exclusive to the members of their loyalty programs. The app’s designs and features can be customized to meet the needs of a program provider.

• Customize O2O models for bonus point/mileage accumulation on app use at international destinations
　 A program provider can add a list of stores where users can receive bonus points/mileage in order to increase their visits to these stores and promote sales.

Sample Screenshots

About LCO
LCO developed and manages “Travel Door”, a mobile app that provides travelers with useful information and services while traveling. Utilizing the technology we have developed through Travel Door, we also provide white label solutions for businesses. Established in August 2012, LCO is a travel technology company funded by TechCube8, a Singapore based-VC, and Singapore’s NRF (National Research Foundation).

Company Name: LCO-Creation Singapore Pte. Ltd.
Date of Establishment: August 2012
Representatives: Co-founder & CEO: Yuki Hiraki, Co-founder & COO: Saki Kobayashi
Service Summary: Development and management/OEM development and management of smartphone app services for international travel
Website: http://lco-creation.sg