Announcement of Agreement to Acquire Music Catalog of Ryuichi Sakamoto

NexTone Inc. (Headquarters: Shibuya-ku, Tokyo; CEO: Masahiro Anan; hereinafter "NexTone") is pleased to announce that its wholly-owned subsidiary, MCJP Inc. (Headquarters: Shibuya-ku, Tokyo; Representative Director: Daisuke Adachi; hereinafter "MCJP"), together with NexTone, collectively referred to as "our Group," has entered into an agreement to acquire the music catalog (copyrights and master rights) of the world-renowned musician Ryuichi Sakamoto, including his representative works, through a joint investment framework with Exceleration Music Partners, LLC (Headquarters: Tennessee, USA; Managing Partner: Glen Barros; hereinafter "Exceleration"), a US corporation specializing in catalog ownership and investment in the music domain.

NexTone develops services that support the next generation of music culture and industry through its core businesses of copyright management and digital distribution, as well as the construction of a global collection network, YouTube Content ID operation, and casting business.

Exceleration is a US-based music company that invests in independent music labels and catalogs, integrating rights acquisition, label operation, digital/physical distribution, and marketing support. It promotes the enhancement of value and international expansion of independent music.

In recent years, the global music market has seen a reassessment of "music catalogs," such as copyrights and master rights of famous songs, as "excellent intellectual property (IP)" that generates stable cash flow over the long term, driven by the global spread of streaming distribution. The target catalog, consisting of the copyrights and master rights of many songs left by Mr. Sakamoto, is currently owned and managed by the estate responsible for Mr. Sakamoto's legacy. Our Group and Exceleration have now agreed to jointly acquire the target catalog from the said estate.

As a result, the target catalog will be jointly owned by our Group and Exceleration, and both companies will jointly promote it to revitalize and maximize the value of the target catalog.

For administration (management and promotion services) of the acquired catalog in the Asian region, excluding Japan, we plan to work closely with Fuji Pacific Music Inc. (Headquarters: Minato-ku, Tokyo; President: Hiroyuki Tateno; hereinafter "Fuji Pacific Music"), which has a strong network in the region.

●Strategic Advantage through Joint Purchase with Exceleration

This transaction is being carried out as a joint purchase with Exceleration, which possesses extensive knowledge and a proven track record in global music catalog investment. Through this strategic partnership, our Group can optimally suppress financial risks while leveraging Exceleration's broad expertise and global-standard active catalog management. Moving forward, we will promote measures to maximize the economic and cultural value of the target catalog by utilizing the strengths of both companies and the network of Fuji Pacific Music.

●Future Direction and Outlook

In line with our philosophy of continuing to take on challenges for the development of music culture and the music industry, NexTone will continue to promote its copyright management business and, by leveraging the global partnership established through this initiative, will promote investment and operation in excellent music catalogs.

●Transaction Overview and Target Music Catalog

- Agreement Date: July 1, 2026

- Contract Amount: Non-disclosed

- Number of Songs: Approximately 1,500 songs

- Representative Songs Included in the Target Catalog:

"Merry Christmas Mr. Lawrence" (Theme song for the film "Merry Christmas Mr. Lawrence")

"The Last Emperor" (Theme song for the film "The Last Emperor")

"energy flow," "Rain," "Aqua," and others

●Profile of Ryuichi Sakamoto

Born in Tokyo in 1952. Completed his Master's degree at the Graduate School of Tokyo University of the Arts. Made his solo debut in 1978 with "Thousand Knives." Joined YMO in the same year. After YMO disbanded in 1983, he released albums such as "Music for Schools," "BEAUTY," "async," and "12," earning global acclaim for his continuous pursuit of innovative sounds. For his film scores, he won the BAFTA Award for Best Original Score for "Merry Christmas Mr. Lawrence" and the Academy Award for Best Original Score, Golden Globe Award, and Grammy Award for "The Last Emperor," among many others. He actively crossed over into the art world, with stage works like "LIFE" and "TIME," and large-scale installation exhibitions in South Korea, China, and Japan. He also frequently addressed environmental and peace issues, founding the forest conservation organization "more trees." He also established the "Tohoku Youth Orchestra" to support the musical activities of children in disaster-stricken areas. Passed away on March 28, 2023.

●Overview of NexTone Inc.

Name: NexTone Inc.

URL: https://www.nex-tone.co.jp/

Established: September 2000

Representative: Masahiro Anan, Representative Director & CEO

Location: 10F, Yebisu Garden Place Tower, 4-20-3 Ebisu, Shibuya-ku, Tokyo

Business Activities: Copyright management, digital distribution, music distribution, business support, etc.

●Overview of MCJP Inc.

Name: MCJP Inc.

URL: https://www.mcjp.co.jp/

Established: September 2001

Representative: Daisuke Adachi, Representative Director

Location: 10F, Yebisu Garden Place Tower, 4-20-3 Ebisu, Shibuya-ku, Tokyo

Business Activities: Copyright management, agency services for music publishing, agency services for master recording royalty calculation, etc.

●Overview of Exceleration Music Partners, LLC

Exceleration Music Partners, LLC was founded in 2020 by leading figures in the global music industry, including Glen Barros, John Burke, Amy Dietz, Charles Caldas, and Dave Hansen, with the aim of investing in the future of independent labels and artists. The company's core founding principles are integrity, fairness, openness, humility, and excellence.

The company is expanding its team of experts in data, sales, and marketing, and has strengthened its structure through the acquisition of Redeye Worldwide, a major company involved in digital and physical distribution. This aims to protect and further enhance the musical legacy built by the founders of independent labels and their affiliated artists.

To date, the company has entered into strategic partnerships or acquisitions with major independent companies such as +1 Records, Alligator, Azadi, Bloodshot, Candid, Cooking Vinyl, Down The Road, Heroic, Kill Rock Stars, Mack Avenue, Mom+Pop, Redeye Worldwide, SideOneDummy, The Ray Charles Foundation / Tangerine Records, and Yep Roc Records.

●Overview of Fuji Pacific Music Inc.

Fuji Pacific Music Inc., established in 1966, is a leading music publisher in Japan. Its core business includes the development of Japanese music works and sub-publishing of Western music works, as well as the acquisition, development, and management of music copyrights both domestically and internationally. It also engages in master recording production, video and music production, and the discovery, development, and management of lyricists, composers, and artists. It is a music business company that comprehensively handles everything from creative support to rights management and content value enhancement, promoting the utilization of music across diverse media such as television, film, commercials, and streaming.

●Message

[Daisuke Adachi, Director of NexTone Inc. / Representative Director of MCJP Inc.]

"We are deeply honored to begin the joint ownership and management of Ryuichi Sakamoto's music catalog, which transcends time and genre and continues to be heard worldwide, in partnership with Exceleration, a global professional in music catalog investment. This initiative is a significant strategic step for our company, allowing us to apply the expertise we have cultivated over many years in music copyright management in a new form of joint ownership of copyrights and master rights. For management in Japan and the Asian region, we will collaborate with Fuji Pacific Music to ensure a robust system.

By combining Exceleration's extensive international knowledge with our management network in Asia, we aim to fully unlock the potential of this catalog and foster a fruitful, long-term cooperative relationship with Exceleration based on mutual trust."

[Charles Caldas, Partner and co-founder, Exceleration Music Partners, LLC]

"NexTone is one of the most respected and forward-thinking music companies in Japan, and its reputation is well-deserved. It is a landmark event for us to work with NexTone as co-administrators of Mr. Sakamoto's music catalog. Mr. Sakamoto is undoubtedly one of the greatest artists of his generation, a true global icon who transcends geographical and artistic boundaries.

Together with NexTone, we will work closely with Mr. Sakamoto's management company to dedicate ourselves to further enhancing the global recognition and appreciation of his outstanding musical legacy. We are very excited about the possibilities this partnership brings to both our companies and believe it will form a strong foundation for our future cooperation."

[The Estate of Ryuichi Sakamoto]

"Music is not a possession, but "time" itself. To pass it on to the next hands—we are very happy about that."

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