Press Release

Tokyo, July 2nd, 2010 — AEC (Nishigotanda 1-13-5. Shinagawa, Tokyo, President Masahiro Yano) has announced today AEC has signed the contract with Quanmax Inc. (Taipei, Taiwan, CEO Kevin Tseng) for exclusive sales of the notebook PC for the Japanese market on June 7th, 2010. The outline of the contract is as follows.

1. Quanmax grants AEC exclusive rights to sell current notebook PC product line.

2. Quanmax and AEC will increase the product line from now on.

3. Quanmax will open the PC support center in Japan.

AEC has also agreed with Quanmax about the rights to sell PC products other than notebook PC, along with above contract.

“FKEY OS” will be built into those PC at the production facility. FKEY OS is the dedicated thin client operating system developed by AEC. This is the first trial in the industry dedicated thin client OS is built into PC at the manufacturing line , shipped and sold for the Japanese market.

By getting the partnership with Quanmax, AEC can now stably supply diskless thin client PCs and other PCs equipped with FKEY OS which is very friendly with the cloud computing. This thin client market is expected to grow very rapidly and AEC can respond to the market demand from small scale to large scale flexibly.

AEC promotes own brand “FKEY” with supplying various PCs for the Japanese market. Also, planning to supply the thin client OS for OEM vendors and PC vendors. And expand the Japanese cloud computing PC market.

About Quanmax
Quanmax (Quanmax Inc. *1) designs notebooks and embedded PCs and supplying to market such as Europe, Taiwan, China with their brand “Quanmax” and “MAX DATA”.

*1 Quanmax Inc. URL　http://www.quanmax.com/ TAIWAN over the counter　market （3549.TWO）

Objectives of the partnership with AEC

The main purpose of this partnership is to enrich the product line and expand the business in Japan since AEC has the leading edge next generation communication and software technology.

With the growing market’s interest in the cloud computing, Quanmax has been considering to utilize the thin client technology, which satisfy both usability and security into their products. For the cloud computing and thin clients, it is very important to support the next generation high speed communication network such as 4G and LTE. Quanmax believes Japanese mobile network operators have the world cutting edge technology in this area and has been looking for a chance to go into the cloud computing / thin client business that matches the corporate strategy. With the alliance of AEC, Quanmax will take advantage of the Japanese next generation high speed network technology promptly. Quanmax hopes to add the cloud computing and dedicated thin client terminals to their product line. These products are expected to get the strong demand from Japanese market.

About AEC

Applied Electronics Corporation has been doing business in the advanced technology area for more than twenty years. Especially after 2007, AEC is developing advanced software for cloud computing together with the major domestic mobile network operator.

Purpose of the alliance with Quanmax

After the joint development of the thin client operating system FKEY OS together with the major mobile network operator, AEC is manufacturing FKEY OS built in USB memory sticks and micro SD cards. These products are used with existing PCs and turn them into the thin client. With the growing market interest about the cloud computing these days, there is also strong market demand for the dedicated thin client terminals which have no hard disks and built in operating system. We have decided this alliance is mandatory in order to built in the FKEY OS at the PC production line.

The purpose of the alliance with Quanmax is to establish the path to supply the FKEY OS built in thin client PCs to the major PC venders worldwide including Japanese venders. By doing this, data center hosting business will grow which is very important part of the cloud computing. AEC is working with data centers and will supply “Thin client package” and “Cloud computing service”. Thin client terminals will play very important role in this business. With this alliance, mass production and sales of the thin client PC is ready. Also the domestic maintenance system will be available shortly.

Smart phones and tablet PCs are included in the cloud computing ready thin client terminal line. AEC will increase the FKEY OS built in products in the domestic market.

Contact.

Applied Electronics Corporation
DK Gotanda 2F,7-13-5 Nishigotanda, Shinagara, Tokyo Japan
Public Relation
Tel: +81-3-5888-4015
Email: info@aec1984.com
URL: http://www.aec1984.com

Number of published application for patent: P2010-92240A

On June 25, 2009, Open Cloud Innovation Forum was held by Sun Microsystems, Inc. in Tokyo Midtown. It reports a dialogue of Panel Discussion and Slide Screens, titled “GRAND BERRY Provides Client Environment of Cloud Computing Securely” presented by Masahiro Yano of Applied Electronics Corporation in the panel discussion of which theme is “Contact Point Between Expanding SaaS Business and Cloud Computing” in this forum.

Panel Dialogue
Slide Screens

Applied Electronics Corporation (Head office; Shinagawa-ku, Tokyo, President & CEO; Masahiro Yano, hereafter “AEC”) announces that BroadBand Tower, Inc. (Head office; Minato-ku, Tokyo, President & CEO; Toshihiko Yamato, hereafter “BBT”) has agreed to underwrite capital increase by third-party allotment of the new shares issued by AEC in the Board of Directors’ meeting of BBT on June 24, 2009.

Link:
http://ir.bbtower.co.jp/ja/PressRelease/PressRelease-9067933670054883002.html

PDF

The main functions newly added by GRAND BERRY-Release 2 are as follows.

1. Correspondence Expansion to Data Communication Cards

2. Correspondence Expansion to VPN System: Improvement of PPTP

It has achieved to be correspondent also to the connection with Windows 2003 Server as PPTP server in addition to the connection with YAMAHA RT58i.

Please see the following site for detail.

■About GRAND BERRY
http://www.aec1984.com/english/grandberry/our-products-outline

GRAND BERRY is registerd trademarks of Applied Electronics Corporation in Japan and other country.

On Feb 16 2009, The 18th Japan-China Exchange Symposium of Industry, Science and Technology was held in Shenzhen, China. House of Representatives member Yuji Yamamoto who is a former commissioner of Financial Services Agency participated as a guest of honor in Japan. In communication department, CEO Masahiro Yano made a speech about “Innovative Technology of Network Operating System” there.

Please see PDF files attached.

PDF1
PDF2

In August 2008, Applied Electronics Corporation releases "GRAND BERRY 2008" which is embedded type of operating system.

"GRAND BERRY" is an operation system developed for enterprise use. Its functions are expanded from AB Linux for usability of PC in mobility and prevention of information leakage. It adopted Linux kernel 2.6.24, and it is correspondence to hi-speed data communication card of communication careers, wireless LAN including both WEP and WAP. "GRAND BERRY" is able to be used for thin client keeping safety anywhere and anytime because it is able to embed into any type of flash memory devices and boot from many kind of PCs. So this OS is expected to be a Ubiquitous era.

And USC Corporation released USB boot type thin client "FKEY2008" on which "GRAND BERRY 2008" installed.
"FKEY2008" is able to use VPN systems such as Firepass, Secure Access, Citrix Access Gateway, Cisco VPN3000 concentrator, L2Connect and PPTP.
And agent for connecting to terminal server such as Windows Terminal Server and Citrix Xenapp, is put on it.

Please check at the next site for details.

♦GRAND BERRY
http://www.aec1984.com/english/grandberry/

♦FKEY 2008
http://fkey.jp/

♦Trademarks

GRAND BERRY is a trademark of Applied Electronics Corp.

About Applied Electronics Corp.

Main Firms Address:
2fl. DK Gotanda, 7-13-5, Nishi-Gotanda, Shinagawa-ku, Tokyo 141-0031, Japan
Capital: 184 million JPY
Description of Business:
Development of software, Manufacture and sales of electronic devices
Contact: +81-3-5888-4015
URL: http://www.aec1984.com/

President of Applied Electronics Corp. Masahiro Yano, appeared on the article "Go for Intellectual Property-Oriented Nation" of "Keizai-Kai" Volume 43, Number11, issued on June 3rd, 2008.

Applied Electronics Corporation releases “GRAND BERRY 2007″ containing Thin Client Printing System that is able to print by remote desktop.

They say that, in thin client, the print of remote desktop may often cause an information leakage so far, because it brings download of data from the central server.

The thin client printing system (TCPS) by FKEY never stores the print image in the client PC after print, so that can print without download of data from the central server to the client PC. This is the first product on USB booting type thin client that prevents perfectly information leakage by the print.
(Patent pending)

Usage of TCPS is as follows:

1. Connect FKEY thin client to the remote desktop on the central server through the VPN circuit.
2. Connect a printer to FKEY thin client PC using a cable.
3. Register the printer on the remote desktop and printer are recognized as the network printer on the remote desktop.
4. Print on the remote desktop.
5. The print image is sent from the central server to the thin client PC with FKEY and it is printed by the local printer connected to the thin client.

About Applied Electronics Corp.

Main Firms Address:
2fl. DK Gotanda, 7-13-5, Nishi-Gotanda, Shinagawa-ku, Tokyo 141-0031, Japan
Capital: 217 million JPY
Description of Business:
Development of software, Manufacture and sales of electronic devices
Contact: +81-3-5888-4015
URL: http://www.aec1984.com/

Applied Electronics Corporation released installation of 17 original wallpapers into KEITAI OS by collaboration with 7 Tama Art University students in commemoration of the sales beginning of KEITA OS-07.

Some original wallpapers are as follows:

KEITAI OS-07 is a tool for making new IT usage of new age and realizes that a user can carry his own PC desktop.

Its characteristics are as follows:

1. The user’s desktop is able to be carried around with a USB memory device.
   (There is a user data area to save data in addition to the dedicated area for operating system.)
2. It is helpful for overseas business trip even if there is not PC for supported Japanese there.
3. Computer virus never rewrite program file.
4. Already install “OpenOffice.org 2.0″ having highly interoperability to "Microsoft Office".
5. Able to reuse used PC.

The price is 19,800 JPY (including tax).
WEB sales on KEITAI OS site: http://www.keitai-os.com/

About Applied Electronics Corp.

Main Firms Address:
2fl. DK Gotanda, 7-13-5, Nishi-Gotanda, Shinagawa-ku, Tokyo 141-0031, Japan
Capital: 114 million JPY
Description of Business:
Development of software, Manufacture and sales of electronic devices
Contact: +81-3-5888-4015
URL: http://www.aec1984.com/