FrameFree® Holdings Announces Multi-Year Research and Development Alliance with Quinland Co. Ltd.

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FrameFree Technology Will be Applied in Development of Digital Posters, Telematics Products and Internet Tradable Virtual Objects

FrameFree Holdings today announced it has entered into a strategic R&D agreement with Quinland Co. Ltd. that will result in the joint development of several products over multiple years -- while the FrameFree patents are valid and effective -- in the areas of digital posters, Telematics and Internet-tradable virtual objects - all of which are ideal markets for the FrameFree application.

FrameFree Technolgies, Inc., a wholly-owned subsidiary of FrameFree Global Limited, launched in 2004 in the U.S. with a family of products that provide easy and efficient authoring and compression of motion imagery. FrameFree Holdings owns more than 80 percent of FrameFree Global Ltd.

Quinland Co. Ltd., a public company in Japan, supports group companies and client companies that operate diverse businesses in five major consumer markets: automobiles, entertainment, housing, education and food through Digital Marketing Engineering Service (DMES), a service for improving the productivity of operations through the thorough intensive utilization of ICT, which is Quinland’s core competence. In August, Quinland agreed to invest the equivalent of US$26 million in a series B round of funding in FrameFree Global Ltd.

FrameFree Technology

Built on the world’s most advanced pixel-matching and interpolation engine, FrameFree’s flagship product FrameFree Studio starts with any-resolution digital still images, and through analysis, interpolation and morphing, automatically provides interactivity and smooth motion between them, resulting in a completely new medium and style of visual expression. The motion imagery generation is fast, easy-to-learn and virtually automatic, ending the need for powerful systems and lengthy frame-by-frame editing, and leaving digital content producers more time to orchestrate their creative vision.

FrameFree Digital Poster technology allows extremely light weight authoring, transmission and display of full HD imagery and content with zero visual defects onto industrial digital signage LCD, LED and plasma devices. FrameFree Digital Poster is currently the only technology in the world capable of delivering a full HD content experience over wireless LANs or Ethernet-based networks.

FrameFree Telematics enables GPS-driven, location-based advertising systems for automobiles and other transports systems. Pristine hi-resolution advertisements can be produced at extreme low cost and delivered real-time to automobiles while on the road, anywhere, anytime.

FrameFree Objects is an Internet software objects technology that allows authors to encapsulate FrameFree Studio movies as an intelligent object. These virtual objects are presented to the user via their browser and can be dragged and dropped to the desktop. Currently, this powerful new technology is being used to develop collectible electronic cards, similar to baseball cards, called Virtual Trading Cards.

“We wanted to extend our relationship with FrameFree Holdings in order to make custom products that we believe will be a huge success when combined with Quinland’s resources,” said Kazuya Yoshimura, CEO and representative director of Quinland Co. Ltd. “Through this new R&D pact, we continue to support and nurture the development of FrameFree products that are further aligned with Quinland’s core competencies – IT marketing, Internet content and information portals and digital signage.”

“Through this alliance, Quinland, FrameFree Holdings and FrameFree Global can work very closely to develop tailor-made solutions for Quinland’s core markets that have the potential to yield very high growth rates in the near future,” said Thomas Randolph, director, FrameFree Holdings. “We will bring the technology and solutions to the table and Quinland will market them globally together with FrameFree Global.”

About FrameFree Holdings Limited

Based in Jersey, Channel Islands FrameFree Holdings Limited is a privately funded holding company founded in 1987. FrameFree Holdings is the founding investor of Monolith Co. Ltd., the IP holder of all FrameFree related IP and patents. Monolith has licensed the exclusive use of all FrameFree related patents outside Japan to FrameFree Holdings for the next 25 years. With the mandate to commercialize FrameFree products on a Global scale, FrameFree Holdings have created several operating companies to execute this task such as FrameFree Global and FrameFree Technologies.

About FrameFree Global Limited

Founded in 2005 and based in Jersey, Channel Isles, UK, FrameFree Global Limited is a joint venture between United Kingdom-based FrameFree Holdings Jersey Limited, Quinland Co. Ltd., and Japan-based Monolith Co., Ltd. (as of September 2006) The company develops and distributes a groundbreaking family of products that provide easy and efficient authoring and compression of motion imagery and enable the delivery of hi-resolution digital movies across multiple networks and platforms at a fraction of the traditional bandwidth and costs

About FrameFree Technologies

Founded in 2004 and based in San Francisco, Calif., FrameFree Technologies, Inc. is a wholly owned subsidiary of FrameFree Global Limited. FrameFree Technologies serves as a software development center for FrameFree Global and produces most of the software products related to FrameFree technologies. Visit the FrameFree web site at http://www.framefree.com.

About Monolith Company Limited

Monolith Co. Ltd. is a privately held Japanese IP company with its head office in Tokyo, Japan. Monolith was formed in May 1990, with the mission to fill the gap between theoretical research efforts in the academic fields and practical needs in the IT business.

Monolith has been unique in its ability to bring together people from business, government, and academia in a cooperative framework. Monolith takes groundbreaking theories and develops them to practical proof-of-concept systems, while protecting its core and derived technologies with a wide range of patents. Currently, Monolith has filed more than 160 patents and has been issued more than 35 patents in globally in the area of differential topology, Homotopy and Critical Point Filters (technology used for FrameFree products). Monolith has licensed all of its patents exclusively to FrameFree Holdings group companies for the entire world market outside Japan. Visit the Monolith web site at http://www.monolith-prime.co.jp

About Quinland Co. Ltd.

Quinland Co. Ltd. is a Japanese public company (Daisho Hercules Stock Exchange Code 2732) founded in 1995.    The company currently has more than 1,000 employees, and a capitalization of US$60 million. Quinland exists to support group companies and client companies that operate diverse businesses in five major consumer markets: automobiles, entertainment, housing, education and food. It does this through Digital Marketing Engineering Service (DMES), a service for improving the productivity of operations through the thorough intensive utilization of ICT. Visit the Quinland web site at http://www.quinland.co.jp. For IR information go to http://www.quinland.co.jp/en/index.html.

FrameFree ® and MOTION GRAVURE® are all registered JAPANESE trademarks of Monolith Co., Ltd. Trademark application for FrameFree™ is pending in the United States Patent and Trademark Office. FrameFree® technologies are developed by Monolith Co., Ltd. using the CPF theory (Yoshihisa Shinagawa et. al., professor of Illinois University,) and protected by Monolith Co., Ltd. (Patent numbers:JP2927350/USP6018592/USP6137910/USP6347152, etc.)

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