March 1, 2017

TOKAI Holdings Corporation
Katsuhiko Tokita, President & CEO(Code No. 3167 Tokyo Stock Exchange First Section)
To whom it may concern

Consignment Contract with Shizuoka Prefecture for Construction“Shizuoka Prefecture Local Government Information Security Cloud”
In preparation for information linkage between administrative organizations for the My Number
system scheduled for July 2017, local governments across the country collaborate with the Ministryof Internal Affairs and Communications to promote drastic measures to strengthen information
security.
TOKAI Communications Corporation (hereinafter “TOKAI COM”), a wholly owned subsidiary of
TOKAI Holdings Corporation, was selected as a subcontractor for construction of "Shizuoka
Prefecture Local Government Information Security Cloud" from Shizuoka Prefecture, as describedin the attachment.
TOKAI COM (http://www.tokai-com.co.jp) has provided a wide range of IT services for individuals
and corporations as a core company of our group. This time competition (proposal method) by
Shizuoka prefecture, we are proud that the company's technology and know-how as atelecommunications carrier, data center operator, cloud service business operator, and system
integrator cultivated by abundant ICT solution was highly appreciated.
We will continue to provide comprehensive ICT solutions to society through TOKAI COM, making
full use of the group's data center, wide area optical fiber network and system development
capabilities.

Contact: Yoshihiro Taniguchi
Public Relations and Investor Relations Office
TEL: +81-(0)54-669-7676
Email: overseas_IR@tokaigroup.co.jp

March 1, 2017

TOKAI Communications Corporation
To whom it may concern

Contract Agreement Entered with Shizuoka Prefecture for Construction of"Shizuoka Prefecture Local Government Information Security Cloud"Realizing advanced information security measures by integrating
Internet access points of Shizuoka prefecture and its local governments
TOKAI Communications Corporation (Headquarters: Shizuoka City, Shizuoka; President & CEO:Katsuhiko Tokita; hereinafter the “Company”) announces that the Company was entrusted theconstruction of “Shizuoka Prefecture Local Government Information Security Cloud” that Shizuoka
prefecture and each local government in Shizuoka start to use in FY2017.
In recent years, cyber-attacks including Targeted Attacks aimed at public institutions andcompanies have increased, and the method is also complicated and sophisticated. Under suchcircumstances, the Ministry of Internal Affairs and Communications is fundamentally strengthens
the information security measures to anticipate information linkage between administrative
agencies including local governments for the My Number system scheduled for July 2017. As one ofmeasures to strengthen it, prefectures and municipalities cooperate to promote the construction of"Local Government Information Security Cloud" that concentrates Internet connection points andperforms advanced security monitoring.
In Shizuoka prefecture, based on such social situation and the municipality's information
security approach indicated by the Ministry of Internal Affairs and Communications, decided toestablish “Shizuoka Prefecture Local Government Information Security Cloud” that aim toconsolidate the Internet connection of each local government in Shizuoka prefecture and strengthen
monitoring and countermeasures such as unauthorized communication, and decided to outsource
construction of this system to the Company in November, 2016.
In selection of outsourcers, judged by proposal competition (proposal method) in order to obtain
excellent proposals utilizing advanced expert knowledge and know-how etc. and our proposal was
highly appreciated in terms of technology and its price.

Outline drowing of “Shizuoka Prefecture Local Government Information Security Cloud”

By constructing this "Shizuoka Prefecture Local Government Information Security Cloud"Shizuoka prefecture will realize advanced security measures that include monitor communication,logs analysis

through consolidating and optimizing the Internet access environment that each

local government had individually built.
And it also aims to realize "keeping the high level of information security and suppressing thecost of such countermeasures", "reducing the workload of operation for information security", and"minimizing the damage caused by security incidents" for Shizuoka prefecture and localgovernment.
Since establishing in Shizuoka prefecture in 1977, the Company have been responsible for theinformation communication business for individuals and corporations of the TOKAI Group*1, and as
a one-stop service company that networks, data center and system development in a trinity, andhave been providing a wide range of services in the information communication field.
Through this "Shizuoka Prefecture Local Government Information Security Cloud" construction,
the Company aggregate and utilize technologies and know-how which acquired over many years as
information communication companies, data center operators, cloud service providers, and system
integrators, committed to improving information security of all the municipalities in Shizuoka
prefecture by local community-based service unique to local companies.
In addition, the Company will aggressively expand sales of new services (security equipment
installation support, security operation center, CSIRT*2 support, security guidance, etc.) that makeuse of the know-how gained through this construction and operation of "Shizuoka Prefecture Local
Government Information Security Cloud" and high-quality, low-cost connecting with eachmunicipality, that was particularly highly appreciated from Shizuoka prefecture, to othermunicipalities and general corporations.

*1 TOKAI GroupTOKAI Group is a group of companies with 22 consolidated subsidiaries and 4 equity-method affiliates under theumbrella of TOKAI Holdings Corporation. Since the beginning of the city gas business in Shizuoka prefecture in1950, promoting the diversification of the business, LP gas, Internet, CATV, Aqua (home delivery bottled water),and be offering these wide variety of products and services that are close contact with the customer's life.
*2 CSIRT (Computer Security Incident Response Team)CSIRT is an organization that monitors problems (principally security problems) on computers and networks, andin the event of a problem, analyzes the cause and investigates the scope of the problem .
* The company name, product name, service name, logo, etc. as listed are trademarks or registered trademarks ofeach company.

[Inquiries regarding this matter]
Chubu Sales Division, East Japan Division, Corporate Sales Department,
TOKAI Communications Corporation
Representative Oya, Ouchi, Suzuki
E-Mail：voice@tokai-grp.co.jp
WEB：http://www.tokai-com.co.jp/ (Japanese Only)