TRANSLATION FOR REFERENCE ONLY

July 22, 2016
(This English translation was released on July 27, 2016)

For Immediate Release
Company NameRepresentativeInquiries

Aplix IP Holdings Corporation
Ryu Koriyama, CEO & Representative Director(Code: 3727, TSE Mothers)
Kengo Nagahashi, Director(Tel: 050-3786-1715)

Aplix’s IoT Analog IC Supports ARM’s CPU for IoT-- Aplix’s IoT solution is now installed
in a foreign manufacturer’s panel heaters for Europe -Aplix IP Holdings Corporation (headquartered in Shinjuku-ku, Tokyo; Ryu Koriyama, CEO &Representative Director; hereinafter “Aplix,” TSE: 3727M) has announced that an IoT analog IC
developed by Aplix to be compatible with ARM Limited(hereinafter “ARM”)’s CPU for IoT is now
installed in a foreign manufacturer’s panel heaters for Europe. Details are as follows.
As the use of the Internet of Things (IoT) spreads, more products are expected to be linked to theInternet. In the area of home appliances, IoT solutions can now be incorporated within products thatare widely available to ordinary consumers, thanks to the economies of large scale associated withthe expansion of markets for communication modules, such as those equipped with Bluetooth andWi-Fi. On the other hand, the cost and time involved in development have proven to be major
challenges in making IoT compatible products. In light of the fierce price competition,affordably-priced products with outstanding designs need to be put on the market as quickly aspossible.
Aplix has been working in these conditions to develop an IoT analog IC that makes highly
price-competitive home appliances compatible with IoT through a one-chip solution. This solution
was first announced in “Aplix Develops World’s First Analog IC for Internet of Things – Enables
Single-Chip IoT Solution for Home and Office Appliances –” on November 30, 2015.
To provide this solution, Aplix combined the analog IC it developed in house with an ARM
licensed CPU for IoT, connecting the analog IC to the operation panel of the existing home
appliance. Through this approach, Aplix’s solution has made it easy to operate existing home
appliances through an HTML5-based browser or application by simply connecting a communication
module to the part where ARM’s CPU for IoT is installed. This has made it easy for Aplix to constructsmartphone applications featuring a high-level design as well as Internet cloud services linked to bigdata. These applications and services were successfully installed in foreign manufacturer’s panel
heaters for Europe in a short time, as shown in the image.
Electric signals to the display part are captured from the input and output area of the operation
panel through Aplix’s IC. These signals are conveyed to the smartphone or network via thecommunication module, and are then relayed to the operation section where the buttons andswitches are located. Having this process take place inside the panel heater allows users to use
Note: This press release is provided to share information about Aplix business activities, and it is not intended to solicit investment in Aplix shares. While the materials may describe information such as forecasts related
to future business performance, this information has been created based on the judgment of Aplix at the time the materials were created. As a result, Aplix offers no guarantee that the conditions described will come topass, and any of the information described is subject to change without notice in the future.

their smartphones or networks to perform operations such as checking the On/Off status of powersource, the temperature setting, the On/Off status of child lock, room temperature, and theoperation status.
This solution merely replaces the input and output area of the liquid-crystal display, a home
appliance can be made compatible with IoT, by adding Aplix’s IC instead of changing the home
appliance’s firmware. As a result, other home appliances can also be made IoT compatible even if
production, including that of the firmware, is outsourced to an original design manufacturer (ODM)or original equipment manufacturer (OEM).
In addition to providing systems-on-a-chip (SoC) that feature a combination of ARM’s CPU for IoT
and Aplix’s analog ICs, Aplix seeks to enhance its profitability by licensing analog semiconductor
technologies for semiconductor manufacturers who are licensed by ARM to manufacture CPUs for
the IoT.

Disclaimer: This English translation is for reference purposes only. In the event of any discrepancy between the Japaneseoriginal and this English translation, the Japanese original shall prevail. We assume no responsibility for this translation or for
direct, indirect or any other form of damage arising from the translation.

Note: This press release is provided to share information about Aplix business activities, and it is not intended to solicit investment in Aplix shares. While the materials may describe information such as forecasts related
to future business performance, this information has been created based on the judgment of Aplix at the time the materials were created. As a result, Aplix offers no guarantee that the conditions described will come topass, and any of the information described is subject to change without notice in the future.