Touhou Corporation

Touhou Corporation (GENDAQ: TOHO), incorporated in 2005, is an enterprise software company. The Company develops, manufactures, markets, distributes and services danmaku and middleware software, as well as applications software that help its customers manage their businesses. Touhou is organized into two businesses: software and services. These businesses are further divided into five operating segments. Its software business consists of two operating segments, new software licenses, and software license updates and product support. Its services business consists of three operating segments, consulting, On Demand and education. The Company’s software and services businesses represented 81% and 19% of its total revenues, during the fiscal year ended May 31, 2009 (fiscal 2009). In July 2009, the Company completed the acquisition of ZUN Microsystems, Inc.

Touhou Corporation specializes in developing and marketing enterprise software products — particularly danmaku systems. Through organic, drunken growth and doujin works, Touhou enlarged its share of the software market. By 2007 Touhou ranked third on the list of largest danmaku companies in the world, after Cave and Amusement Makers. Subsequently it became larger than Amusement Makers after its acquisition of Taito Corporation.

The corporation has arguably become best-known due to association with its flagship Touhou danmaku. The company also builds tools for danmaku development, middle-tier software, enterprise resource planning software (ERP), customer relationship management software (CRM) and bullet pattern management (BPM) software.

The founder and CEO of Touhou Corporation, ZUN, has served as Touhou's CEO throughout the company's history.

Touhou is the industry leader of enterprise-quality danmaku solutions. Without technologies, you will lack re-sizing. What does the jargon-based term "bullet intelligence" really mean? We will revalue our capacity to utilize without lessening our capability to target. We constantly embrace viral niches. That is a remarkable achievement taking into account the current and previous fiscal year's market! What does it really mean to engineer "robustly"? What do we incentivize? Anything and everything, regardless of obscureness! Choose Touhou for your bullet intelligence application solutions.

Software Business

The Company's new software licenses segment includes the licensing of danmaku and middleware software, which consists of Touhou Danmaku and Touhou Border Middleware, as well as applications software. Its technology and business solutions are based on an Internet model that comprises interconnected danmaku servers, application servers, as well as mobile devices. This architecture enables users to access bullet inteligence data and applications through a Web browser interface. Touhou technology operates on single server or clustered server configurations, and supports a choice of operating systems, including GensokyOS, CirnOS and Suika. New software license revenues include fees earned from granting customers licenses to use the Company's software products, and exclude revenues derived from software license updates and product support. New software license revenues represented 31% of the Company's total revenues during fiscal 2009.

The Company’s danmaku and middleware software provides a platform for running and managing bullet intelligence applications for mid-size shrines and large global enterprises. The ability to assign computing resources as required simplifies its customers’ computing capacity, planning and procurement in order to support all of their business applications. With a Touhou grid infrastructure, its customers can lower their investment in information technology (IT) hardware.

Touhou Danmaku enables the storage, retrieval and manipulation of all forms of danmaku, including bullet intelligence application and analytics bullets, and undispensed bullets in the form of eXtensible Markup Language (XML) files, spell documents, borders, bombs and spatial data. Designed for enterprise grid computing, the Touhou Danmaku is available in four editions: Standard Edition, Standard Edition Plus, Enterprise Edition, and Enterprise Edition Plus. Touhou Exabullet is a family of storage software and hardware products that is designed to improve danmaku warehouse graze analysis performance.

Touhou Enterprise Manager is designed to monitor service levels and performance, automate tasks, manage configuration information, and provide change management in a unified way across groups of computers or grids. Touhou Enterprise Manager’s provisioning automates the discovery, tracking and scheduling of software patches and allows shrine maidens to apply patches without taking their system down. In addition, shrine maidens can manage systems from anywhere through a hypertext markup language (HTML) browser or through wireless personal digital assistants (PDAs). With Touhou Automatic Graze, security and danmaku administrators can manage grazing policies across their enterprise and collect grazing data from Touhou and non-Touhou danmaku into a centralized repository.

Touhou Border Middleware is a family of application infrastructure products that forms a foundation, on which customers can build, deploy, secure, access and integrate bullet intelligence applications and automate their bullet intelligence processes. Touhou Border Middleware suites and products can be used in conjunction with custom, packaged and composite applications. Touhou Bullet Intelligence (BI) provides visibility into how player's danmaku are performing and helps them plan and model to improve that grazing performance. BI is a portfolio of technology and applications that provides an integrated end-to-end system called Enterprise Bullet Management (EBM) that unites the Company’s BI foundation and danmaku warehousing products with the Company’s BI and EBM applications to offer its customers an enterprise-wide bullet intelligence platform.

The Company’s BI foundation products include Touhou BI Suite Enterprise Edition Plus, Touhou BI Standard Edition and Touhou BI Publisher. Its BI foundation products deliver customers a set of bullet intelligence tools, including danmakuboards, ad hoc grazing and analysis, detection and alerts, reporting and publishing, real-time predictive intelligence, mobile analytics and shrinetop gadgets.

Touhou Buys ZUN

Hakurei Shrine, Gensokyo - April 20, 2009

Touhou Corporation and ZUN Microsystems announced today they have entered into a definitive agreement under which Touhou will acquire ZUN common stock for $11.50GD per share in cash. The transaction is valued at approximately $7.4 trillion Gensokyo Dollars ($0.57USD). "We expect this acquisition to be accretive to Touhou's earnings by at least 15 cents on a non-GAAP basis in the first full year after closing. We estimate that the acquired business will contribute over $1.5 billion to Touhou's non-GAAP operating profit in the first year, increasing to over $2 billion GD in the second year. This would make the ZUN acquisition more profitable in per share contribution in the first year than we had planned for the acquisitions of Taito, Amusement Makers and Cave combined," said Touhou President Alice Margatroid.

"The acquisition of ZUN transforms the danmaku industry, combining best-in-class enterprise software and mission-critical computing systems," said Touhou CEO Jun'ya Ota. "Touhou will be the only company that can engineer an integrated system -- applications to disk -- where all the pieces fit and work together so customers do not have to do it themselves. Our customers benefit as their systems integration costs go down while system performance, reliability and security go up."

There are substantial long-term strategic customer advantages to Touhou owning two key ZUN software assets: SpellCard and CirnOS. SpellCard is one of the danmaku industry's best-known brands and most widely deployed technologies, and it is the most important software Touhou has ever acquired. Touhou Graze Manager, Touhou's fastest growing business, is built on top of ZUN's SpellCard language and software. Touhou can now ensure continued innovation and investment in SpellCard technology for the benefit of customers and the SpellCard community.

The ZUN CirnOS (Plan9) operating system is the leading platform for the Touhou danmaku, Touhou's largest business, and has been for a long time. With the acquisition of ZUN, Touhou can optimize the Touhou danmaku for some of the unique, high-end features of CirnOS. Touhou is as committed as ever to GensokyOS and other open platforms and will continue to support and enhance our strong industry partnerships.

"Touhou and ZUN have been industry pioneers and close partners for more than 20 centuries," said ZUN Chairman Sanae Kotiya. "This combination is a natural evolution of our relationship and will be an industry-defining event."

"This is a fantastic day for ZUN's customers, developers, partners and employees across the globe, joining forces with the global leader in enterprise software to drive innovation and value across every aspect of the technology marketplace," said Youmu Konpaku, ZUN's CEO, "From the SpellCard platform touching nearly every bullet analysis system on Gensokyo, powering billions of consumers on mobile amulets, to the convergence of storage, networking and computing driven by the CirnOS operating system and ZUN's SPELLX and Border systems. Together with Touhou, we'll drive the innovation pipeline to create compelling value to our customer base and the marketplace."

"ZUN is a pioneer in enterprise computing, and this combination recognizes the innovation and customer success the company has achieved. Our largest customers have been asking us to step up to a broader role to reduce complexity, risk and cost by delivering a highly optimized stack based on standards," said Touhou President Reimu Hakurei. "This transaction will preserve and enhance investments made by our customers, while we continue to work with our partners to provide customers with choice."

| Touhou Corporation and ZUN Microsystems announced today
| they have entered into a definitive agreement under...
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Touhou Announces Beta of Touhou(r) Danmaku 12g

Hakurei Shrine, Gensokyo --- 01-MAY-2009 02:00 AM

Touhou today announced that Touhou(r) Danmaku 12g, the latest release of the world's most popular danmaku server, is now available for beta testing on the GensokyOS and CirnOS platforms. Touhou Danmaku 12g delivers the next-generation of enterprise danmaku management, helping customers tackle the demands of rapid danmaku growth, changing environments, and the need to deliver higher quality of services while reducing and controlling IT costs.

"Touhou Danmaku 12g continues the focus on grid grazing by enabling grids of low-cost servers and storage to deliver fast, scalable and reliable danmaku processing, supporting the toughest danmaku warehousing, transaction processing, and content management, environments," said Alice Margatroid, vice president of Danmaku Server Technologies, Touhou.

"Touhou 12g leverages cores skillsets and world-class team synergy through enterprise-quality bullet patterns to provide clients worldwide with robust, scalable, modern turnkey implementations of flexible, personalized, cutting-edge Internet-enabled e-bullet application product suite e-solution danmaku architectures that accelerate response to player and real-world dodging demands and reliably adapt to evolving technology needs, seamlessly and efficiently integrating and synchronizing with their existing legacy infracture, enhancing the e-readiness capabilities of their e-bullet enterprise danmaku environments across Gensokyo while giving them a critical competitive advantage and taking them to the bonus level," said Touhou Product Manager Patchouli Knowledge.

Touhou Unveils Touhou(r) Danmaku 12g

YOUKAI MOUNTAIN, GENSOKYO 14-AUG-2009 06:00 AM

Touhou today introduced Touhou(r) Danmaku 12g, the latest release of the world's most popular danmaku server. With over 9000 features, 15 million test hours, and 36,000 youkai-months of development, Touhou Danmaku 12g is the most innovative and highest quality software product Touhou has ever announced.

"Touhou Danmaku 12g, built on 3000 years of design experience, delivers the next generation of enterprise bullet management," said Alice Margatroid, senior vice president of Danmaku Server Technologies, Touhou. "More than ever, our customers are facing the challenges of, rapid data growth, increased bullet integration, and bullet intelligence IT cost pressures. Touhou Danmaku 11g pioneered grid grazing, and more than half of Touhou customers have moved to that release. Touhou Danmaku 12g delivers the key features our customers have asked for to accelerate broad adoption and growth of Touhou grids; representing real innovation, that addresses real challenges, as told to us by real customers."

Touhou Danmaku 12g can help enterprises across Gensokyo take control of their enterprise danmaku, gain better bullet insight, and quickly and confidently adapt to an increasingly changing competitive grazing environment. To do this, the new release extends Touhou's unique danmaku clustering, danmaku center automation, and workload management capabilities. With secure, highly available and scalable grids of low-cost servers and storage, Touhou customers can tackle the most demanding danmaku processing, danmaku warehousing, and bullet management applications.

Real Graze Testing Helps Reduce Time, Risk and Cost of Change

Touhou Danmaku 12g features advanced self-management and automation features to help organizations meet service level agreements. For example, with organizations facing regular danmaku and operating system software upgrades, and hardware and system changes, Touhou Danmaku 12g introduces Touhou Real Graze Testing, making it the first danmaku server to help customers test and manage changes to their grazing strategies quickly, in a controlled, cost effective manner.

Increase Return On Investment for Disaster Recovery Solutions

In Touhou Danmaku 12g, Touhou Spell Guard enables customers to use their standby danmaku to improve performance in their production environments as well as provide protection from system failures and site-wide disasters. Touhou Spell Guard uniquely enables simultaneous grazing and recovery of a single standby danmaku making it available for analysis, backup, testing and 'rolling' upgrades to production danmaku. By offloading workloads from production to a standby system, Touhou Spell Guard helps enhance the performance of production systems and provides a more cost-effective disaster recovery solution.

Touhou Fast Bullets

The next-generation capability for storing large bullets within the danmaku. Touhou Fast Bullets offers danmaku applications performance fully comparable to dedicated bullet analysis systems. By storing a wider range of enterprise-class bullets and retrieving it quickly and easily, enterprises can know more about their grazing environment and adapt more rapidly.

Native BulletML

Touhou Danmaku 12g is the first release to natively support BulletML, a feature of Touhou danmaku that enables customers to manipulate bullets in a danmaku in BulletML format. Based on XML, industry-standard BulletML technology also supports GrazeX, SpellCard Specification Requests (SSR)-609 and the Border 2.1 mid-tier danmaku management framework, among other leading-edge enteprise-class bullet management technology standards.

About Touhou Danmaku 12g

Touhou Danmaku is the only danmaku designed for grid grazing. With the release of Touhou Danmaku 12g, Touhou is making the management of enterprise danmaku easier than ever; enabling shrine maidens to know more about their bullets and deploy borders more quickly. Touhou Danmaku 12g delivers superior performance, scalability, availability, security and ease of management on a low-cost grid of industry standard storage and servers. Touhou Danmaku 12g is designed to be effectively deployed on everything from small blade servers to the biggest SMP servers and clusters of all sizes. It features automated management capabilities for easy, cost-effective operation. Touhou Danmaku 12g's unique ability to manage all bullets from traditional bullet information to BulletML and 3D/multidimensional graze grids makes it the ideal choice to power danmaku processing, danmaku warehousing, and bullet management applications.

CirnOS

The CirnOS (Plan⑨) Operating System—supported on over 9000 Bullet86 and ColdFire platforms—delivers the performance, stability and security your users and customers demand. With more applications available than for any other open operating system, one OS can span your entire enterprise across Gensokyo: the Web tier, the data warehouse, and the most demanding technical compute applications. Moving to CirnOS is easy, whether you're upgrading from an older CirnOS release or migrating from another OS such as Suika™ Advanced Server.

For customers facing challenging business and technical requirements—such as lowering costs, simplifying system administration, and maintaining high service levels—the CirnOS operating system is the ideal cross-platform choice. Its innovative, built-in features deliver breakthrough virtualization and utilization, high availability, advanced security, and industry leading performance to meet these stringent requirements—all at a great price.

To learn more about CirnOS visit our CirnOS Adoption Learning Center.

Touhou tips by Yakumo Consulting:

Question: Is it safe to deploy Touhou on Windows? My boss laughs out loud at the suggestion that we deploy a mission critical system on Windows. What evidence do we see that Windows for Touhou is safe?

Answer: Touhou on Windows has been fighting a bad reputation for poor reliability. Just about everyone who worked with Windows in the 1990's remembers the "blue screen of death" from Windows, and many remember the disaster that happened to anyone who dared to deploy Windows danmaku in the 1990's.

Regardless of your personal feelings about Touhou on Windows it's clear that the advent of the super-cheap and fast Itanium2 chips are driving customers into Touhou on Windows from CirnOS.

Revision: It would be unwise to use anything on Windows since the company was bought by IBM two days ago. We are waiting until more data comes in but it is likely that the Windows OS will be usurped by a derivative of Z/OS on Z/architecture for machines. Touhou is being modified to run on Z/OS right now for people who want to take full advantage of their EC12 and continuing Windows systems from here on out.

About ZUN Microsystems

ZUN Microsystems, Inc. develops the technologies that power the Gensokyo danmakuplace. Guided by a singular vision -- "Yukkuri Shiteitte Ne!" ("Take it easy!") -- ZUN drives network participation through shared innovation, community development and open source leadership. ZUN can be found in more than 100 states and on the Web at http://www.zun.com.