【Dispute with Foretellix Ltd. on Foretify】

To whom it may concern and our customers

Thank you for your continuous patronage to our products and services.

We, VMC, have received a sudden notice of termination of distribution agreement from Foretellix Ltd. on the product known as Foretify (Automotive Simulation Software) on which we have made our own investment for product development and sales in Japanese market for more than two years.

The reasoning of their action is, however, not shown to us despite our repeated request to them and we are now in consideration of legal actions against Foretellix Ltd. asking for reasonable compensation on our investment and sales achievement.

We are very sorry for your inconvenience and/or troubles caused by the above and are asking you for a good understanding on the situation while keeping you posted any development on the issue.

Eiji Takita
President
Virtual Mechanics Corporation