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Resound Marketing for SOURCENEXT
+1 (609) 279-0050 x121


Michelle Alvarez
Head of Global Communications, Rosetta Stone
1 (703) 387-5862

SOURCENEXT Acquires Rosetta Stone’s Japan Operations to Bring
New Language Learning Products to Worldwide Markets


Software Giants Double Down on Partnership to Tear Down Language Barriers with Product Innovations for All Types of Language Learners



TOKYO, JAPAN - April 26, 2017 - SOURCENEXT (TYO: 4344), Japan’s market-leading software publisher and distributor, announced today an expanded partnership with Rosetta Stone (NYSE:RST), a world leader in technology-based learning solutions. Based on the positive reception to their initial partnership announced in March, SOURCENEXT has entered into an agreement to pursue the acquisition of Rosetta Stone’s Japanese entity, in order to accelerate plans to develop innovative applications for the Rosetta Stone brand in Japan. Upon closing of the transaction contemplated by this new agreement, SOURCENEXT will not only promote and distribute existing language learning software for the Japanese marketplace, but also act as an additional innovation hub for Rosetta Stone products. This will allow SOURCENEXT to utilize its renowned technology expertise and design savvy to build technologies such as artificial intelligence (AI) and speech recognition into new language learning offerings to serve more customer needs than ever - from youth language learning to business communication support across devices and platforms.


"Rosetta Stone is a world-renowned brand, so the opportunity to help them drive language innovation forward in the Japanese marketplace is huge," said Noriyuki Matsuda, CEO and founder of SOURCENEXT. "Japan is more globalized than ever, and we believe we are uniquely able to provide Japanese consumers the language learning tools they need to become citizens of the world, as well as using our marketplace opportunity as a testing ground for advancing the Rosetta Stone brand."


The need for technological language support is greater than ever in Japan, with Japanese companies hiring more global employees and the number of non-Japanese residents increasing year over year. Furthermore, SOURCENEXT intends to launch Rosetta Stone products for students and schools as Japan will now require English to be taught even earlier, beginning in fifth and sixth grades. In addition to primary-school language learning software, SOURCENEXT intends to help language learners prepare for various proficiency tests through Rosetta Stone, such as the TOEFL and TOEIC, for prospective college students and corporate employees, respectively.


SOURCENEXT will also identify the most relevant, promising products to add to the Rosetta Stone brand family in Japan, from artificial intelligence pocket translators to online conversation support services, and more. Furthermore, SOURCENEXT plans to expand the Rosetta Stone brand in Japan beyond education software to other products and technologies across media, services, devices, learning programs, and online communities.


"SOURCENEXT is an ideal partner for us, eager and equipped to quickly expand the Rosetta Stone product portfolio and sales channels in Japan," said John Haas, president and CEO of Rosetta Stone. "We look forward to the potential opportunity to apply SOURCENEXT’s innovations to the global marketplace, as well, bringing new technologies and products into other territories to meet more language support needs than ever."


Upon closing of the transaction contemplated by this new agreement, SOURCENEXT Corporation will pay $500,000 for the acquisition of the Rosetta Stone Japan Inc. entity from Rosetta Stone Ltd., a Virginia, U.S.-based corporation. Under a licensing agreement entered into by SOURCENEXT with Rosetta Stone last month, Rosetta Stone has first rights to license products developed by SOURCENEXT under the Rosetta Stone brand and trademark for resale in territories outside of Japan. The SOURCENEXT license agreement provides for Trademark Rights for the "Rosetta Stone" brand in Japan, as well as certain rights to make edits to the digital download products and create derivatives.



SOURCENEXT (TYO:4344), Japan’s publicly traded, market-leading software publisher and distributor, which not only plans and develops their own products, also specializes in helping U.S. and other foreign-based software companies launch their desktop and mobile apps in the Japanese market and grow market share for sustained profitability. With 20 years of software publishing experience in Japan, SOURCENEXT offers a unique, full-service Japanese market penetration program for software providers. SOURCENEXT has helped companies like Rosetta Stone, Dropbox, Bitdefender, Magix, and more, launch successful desktop software tools and mobile apps in Japan with its deep market experience, brand trust, top retailer relationships, and extensive distribution network. For more, visit


About Rosetta Stone

Rosetta Stone Inc. (NYSE: RST) is dedicated to changing people’s lives through the power of language and literacy education. The company’s innovative digital solutions drive positive learning outcomes for the inspired learner at home or in schools and workplaces around the world.


Founded in 1992, Rosetta Stone’s language division uses cloud-based solutions to help all types of learners read, write, and speak more than 30 languages. Lexia Learning, Rosetta Stone’s literacy education division, was founded more than 30 years ago and is a leader in the literacy education space. Today, Lexia helps students build fundamental reading skills through its rigorously researched, independently evaluated, and widely respected instruction and assessment programs.  


For more information, visit "Rosetta Stone" is a registered trademark or trademark of Rosetta Stone Ltd. in the United States and other countries.