Announcement of Strategic Partnership with Fungry Inc. to Enhance CLATHAS Brand Awareness and Sales

Our company has been operating the 'CLATHAS' brand business, but has lagged behind in implementing cutting-edge marketing strategies. In light of this situation, at the board of directors meeting held on May 14, 2026, we resolved to collaborate with Fungry Inc. (Headquarters: Shibuya-ku, Tokyo; Representative Director: Yuki Matsuoka, hereinafter 'Fungry') to enhance the brand's value. As announced in the 'Notice Regarding Trademark Transfer and Generation of Special Profits' dated May 14, 2026, we have decided to transfer the related trademark rights. Accordingly, we hereby announce that our collaboration with Fungry will commence on July 1, 2026.

This arrangement establishes a framework enabling both companies to jointly hold ownership of the 'CLATHAS' brand while collaborating to drive its development. Furthermore, after the trademark transfer, our company and Fungry Inc. have agreed on a revenue-sharing arrangement to mutually benefit from revenue opportunities generated through brand value enhancement initiatives. While specific terms will not be disclosed due to confidentiality obligations under our agreement with the counterparty and considerations for future business operations, our company will continue to contribute to the medium- to long-term enhancement of the 'CLATHAS' brand value through brand supervision, acquisition of new sales channels, and strengthened collaboration with licensee companies.

[Comment from Toshio Iwao, President and Representative Director of our company]

'We have now concluded a strategic business partnership with Fungry Inc. aimed at expanding sales and profits for our jointly held 'CLATHAS (Kureisasu)' brand. Fungry possesses extensive expertise in content creation, branding, web production and operation, and marketing support. Through this partnership, we will combine our company's technological foundation of 'Management Science × Information Engineering' with Fungry's outstanding marketing expertise to promote brand value enhancement, creation of new customer touchpoints, and strengthened sales capabilities. Marketing expertise is essential for our company's initiatives in 'continuous M&A of established enterprises and smart company transformation,' and we believe this partnership will contribute to medium- to long-term revenue growth and enhancement of corporate value.'

1. Background and Purpose of This Initiative

'CLATHAS' is a fashion brand that our group has been operating as a licensing business since November 2011. While we have previously worked to enhance brand awareness and expand the licensing business, we have determined that to further elevate brand value and expand sales opportunities for each licensee, it is crucial to strengthen customer acquisition capabilities, content creation, information dissemination, and customer engagement in the digital domain.

Fungry is an organization spun off from the elite creative division of Branding Technology Co., Ltd. (Tokyo Stock Exchange Growth Market: 7067). With a history of leading corporate branding and content marketing, Fungry has accumulated over 12,000 creative production projects and unique production know-how.

Going forward, by integrating our company's deep understanding of 'CLATHAS' cultivated over many years, strong trust relationships with each licensee, and sales channel development capabilities, we aim to create diversified customer touchpoints in the digital domain, thereby promoting the medium- to long-term value enhancement of the 'CLATHAS' brand and further expanding sales opportunities for each licensee.

2. Strengths of Fungry Inc.

Fungry Inc. operates businesses in content marketing, brand creative services, and platform development. The company possesses expertise in content planning, copywriting, creative production, and supporting information dissemination on digital platforms such as owned media and social media, all aimed at clearly communicating a brand's value to consumers.

Moving forward, we will leverage Fungry's know-how in digital marketing and creative fields to strengthen information dissemination through the brand's official website, various social media platforms, LINE, email newsletters, and other channels. We will also promote customer referrals to licensees, provide promotional digital assets, and utilize marketing data to enhance brand awareness, expand sales opportunities, and elevate the medium- to long-term brand value of 'CLATHAS'.

Fungry Inc. Official Website: https://fungry.co.jp/

4. New Brand Management Structure

After the trademark transfer, our company and Fungry Inc. will leverage their respective strengths and work together to enhance brand value under the following division of roles.

(1) Our Company's Role

Leveraging our experience in operating the 'CLATHAS' brand licensing business and our relationships with licensee companies, we will continue to support operations that respect the brand's worldview, acquire new sales channels, and strengthen collaboration with licensees.

Additionally, to maintain brand consistency regarding product planning, design, quality, sales channels, and other aspects, we will support the maintenance and enhancement of the brand's tone and manner through consultations with relevant parties.

(2) Fungry Inc.'s Role

Fungry Inc. will be responsible for planning and producing digital content aimed at enhancing brand value, establishing official digital channels, and providing sales promotion support to each licensee.

Specifically, we will utilize digital touchpoints such as the brand's official website, social media, videos, visual materials, email newsletters, and LINE to strengthen overall information dissemination and customer engagement for the brand.

4. Key Initiatives Planned for Implementation

(1) Strengthening the Brand's Official Portal Site

We are considering establishing the 'CLATHAS' brand's official website as a hub-type portal that serves not only as a platform for brand information dissemination but also directs customers to each licensee's products and e-commerce sites.

By expressing the brand's worldview across various categories such as bags, wallets, apparel, and accessories, and by disseminating product information, campaign details, and coordination suggestions, we will support the expansion of sales opportunities for each licensee.

(2) Production and Provision of Promotional Digital Assets

We are considering utilizing Fungry's creative production capabilities to create common brand key visuals, social media images, short videos, model-worn images, and promotional materials featuring influencers.

By establishing a system that allows each licensee to use these promotional materials on their own e-commerce sites, social media, in-store promotions, and other channels, we will ensure unified brand imagery while supporting the efficiency of promotional activities and enhancing sales capabilities for each licensee.

(3) Establishment of Common Customer Touchpoints

We are considering establishing common digital touchpoints such as LINE and email newsletters for the brand, and conducting cross-brand information dissemination while obtaining customer consent and complying with personal information protection laws and regulations.

This will enable, for example, sending new wallet or apparel product information to customers who have purchased a bag, thereby