Pandora TV Co., Ltd. agreed to acquire Novato Co., Ltd. from Kang, Dong-Won and others in stock on October 8, 2014. The merger ratio between Pandora and Novato is 1 is to 2.2712947. Pandora TV Co., Ltd. will issue 0.49 million new shares. Pandora TV Co., Ltd. signed the contract to acquire Novato Co., Ltd. from Kang, Dong-Won and others in stock on October 15, 2014. Upon completion of the merger, Pandora TV Co., Ltd will remain, while Novato Co., Ltd. will be dissolved. Novato had total assets of total assets of KRW 127.51 million and net liabilities of KRW 42.4 million as on September 30, 2014.

The Board of Directors of Pandora and Novato approved the transaction. Signing of merger agreement is scheduled on October 15, 2014, share register definite record date is scheduled on October 28, 2014, general meeting of stockholders substituting decision of board of directors for merger contract approval is scheduled on November 13, 2014 for both Pandora and Novato, merger date and merger registration date is scheduled on December 31, 2014 while scheduled delivery date of new share certificates is January 14, 2015. As of
Nvomeber 13, 2014, the number of opposition shares regarding the merger with Novato Co., Ltd. does not correspond to 20% of the total number of issued shares of Pandora TV Co., Ltd., the general shareholders meeting will be substituted and will get an approval on the merger. This merger corresponds to Commercial Law Article 527-3 of small-scale merger and so Pandora TV Co., Ltd. substituted the approval of the general shareholders meeting to the approval of the Board of Directors. Serim Accounting Corporation provided evaluation of merger ratio for Pandora.