[Logo of JASDAQ]
December 13, 2017

Company:

BroadBand Tower, Inc.

Representative:

HiroshiFujiwara,President,

Chairman of the Board of Directors and CEO:(Company Code: 3776)
Contact person:

Mieko Nakagawa, Executive Director& Member of the Board, Legal & Accounting Group(Tel:+81-3-5202-4800 (Main switchboard))

Recognition of Extraordinary Income from the Transfer of Sharesof the Equity Method Affiliate and Revision of Earnings Forecast
BroadBand Tower, Inc. (the "Company") has resolved at the Board of Director's meeting held on
December 13, 2017 that the Company will transfer shares of BBF, Inc., which is the equity method affiliateof the Company, to HITO-Communications, Inc.

As such, the Company hereby announces that recognitionof an extraordinary income is expected with respect to its results for the second quarter of the fiscal year
ending June 2018 and that revision has been made to its earnings forecast in relation thereto.

1.

Purpose of the Share Transfer

As the technologies of Internet of Things (IoT), big data and Artificial Intelligence (AI) develop
and markets of such technologies expand, the Company has been pursuing selection and concentration ofbusiness to make these markets as its area of growth and to seek expansion of business.

As part of suchselection and concentration of business, the Company transferred part of its shares of BBF, Inc. to HITOCommunications, Inc. on June 30, 2017, and has made BBF, Inc. its equity method affiliate.
With respect to its data center service, which is the Company's core service, the Company isplanning to establish a new data center in Otemachi in August 2018.

Furthermore, the Company will

accelerate selection and concentration of business by transferring shares of BBF, Inc., seek development andgrowth of business in areas of IoT, big data and AI, and strengthen existing businesses such as data centerservices.
Due to this transfer of shares, BBF, Inc. will be excluded from the Company's scope of equity
method beginning from the third quarter of the fiscal year ending June 2018.
The transfer of shares will be executed in installments.

For the first share transfer, 810 shares willbe transferred on December 14, 2017 and for the second share transfer, 600 shares will be transferred on July2, 2018.

12.

Summary of the First Share Transfer

Date of share transfer

December 14, 2017

Number of shares held before transfer1,410 shares (percentage of the number of voting
rights held: 23.5%)

Number and aggregate amount of shares transferred

810 shares, approximately JPY 1 billion

Number of shares held after transfer

600 shares (percentage of the number of voting
rights held: 10.0%)

Summary of the Second Share Transfer

Date of share transfer

July 2, 2018 (scheduled)

Number of shares held before transfer

600 shares (percentage of the number of voting
rights held: 10.0%)

Number and aggregate amount of shares transferred

600 shares, approximately JPY 740 million

Number of shares held after transfer

0 share3.

Effect on Operating Results

As a result of the first share transfer, approximately JPY 920 million and approximately JPY 670
million of gain on sale of affiliates' shares is expected to be recognized on non-consolidated financial
statements and consolidated financial statements, respectively, for the second quarter of the fiscal year ending
June 2018. The gain on sale of the second share transfer will be expected to be recognized for the following
fiscal year.

In consideration of these share transfers and the recent developments in operating results, theCompany revised its earnings forecasts as previously announced on August 9, 2017 as follows.
With respect to the non-consolidated earnings forecast for net sales, net sales of data solution
showed a better performance compared to the previously announced forecast.

With respect to the profits,

the Company has revised its earnings forecast due to carryforward of expenses for such as outsourcing to thesecond half of the year and recognition, etc. of gain on sale of affiliates' shares.
With respect to the consolidated earnings forecast for operating income, it fell below the previouslyannounced forecast due, in addition to the factors of non-consolidated earnings forecast, mainly to theincrease of the overall expenses of IoT related services of subsidiaries in the second half of the year.

TheCompany has also revised its earnings forecast due to the recognition, etc. of gain on sale of affiliates' shares.
The Company is still working on the calculation of goodwill of converting JapanCableCast Inc. toits wholly owned subsidiary, which was announced on September 29, 2017, and will promptly disclose theresults if necessary.

(1)

Revision of Non-consolidated Earnings Forecast for the Second Quarter of the Fiscal Year ending2

June 2018 (July 1, 2017 to December 31, 2017)

Net income
Ordinary

Net income

per share forNet sales

incomefor the quarterthe quarter

JPY million

JPY million

JPY million

JPY

Previously announced forecast (A)3,500(100)(100)(1.96)

Revised forecast (B)3,660(36)

380

7.44

Change (B - A)

160

64

480

Percentage change

4.6%

--

3,509

7256

(For reference) Results of the secondquarter of the previous fiscal year
(second quarter for the fiscal year1.11ended June 2017)(2)

Revision of Non-consolidated Earnings Forecast for the Fiscal Year ending on June 2018 (July 1,2017 to June 30, 2018)

Ordinary

Net income

Net sales

incomeNet income

per share

JPY million

JPY million

JPY million

JPY

Previously announced forecast (A)

7,200

(200)

50

0.98

Revised forecast (B)7,420(108)

480

9.40

Change (B - A)

220

92

430

Percentage change

3.1%-860.0%

7,388

94744

(For reference) Results of theprevious fiscal year (fiscal year14.59

ended on June 2017)(3)

Revision of Consolidated Earnings Forecast for the Second Quarter of the Fiscal Year ending on3

June 2018 (July 1, 2017 to December 31, 2017)

Net income
attributableto owners

Net incomeof theper share

OperatingOrdinary

parent forfor theNet sales

incomeincomethe quarterquarter

JPY million

JPY million

JPY million

JPY million

JPY

4,000

(200)

(100)

(100)

(1.96)

4,830

(46)

4559

1.16

Change (B - A)

830

154

145

159

Percentage change

20.8---

18,717

522

462

89

Previously announced forecast(A)Revised forecast (B)(For reference) Results of thesecond quarter of the previousfiscal year (second quarter for

1.75

the fiscal year ended on June2017)(4)

Revision of Consolidated Earnings Forecast for the Fiscal Year ending on June 2018 (July 1, 2017
to June 30, 2018)

Net income
attributableto owners
Operating

Ordinaryof theNet income

Net sales

incomeincomeparentper share

JPY million

JPY million

JPY million

JPY million

JPY

10,200

100

200

100

1.96

10,980

(46)

60

104

2.04

Change (B - A)

780

(146)

(140)

4

Percentage change

7.6%-(70.0)%4.0%

38,987

846

767

427

Previously announced forecast(A)
Revised forecast (B)(For reference) Results of theprevious fiscal year (fiscal year8.37

ended on June 2017)- End -4