Aplix IP Holdings Press Release
TRANSLATION FOR REFERENCE ONLY

November 11, 2015
Aplix IP Holdings Corporation(Code: 3727 TSE Mothers)

Aplix IP Holdings announces the consolidated FY2015 3rd quarter results- By the end of this 3rd quarter, Aplix has finished the restructuring operation of selling
off the game and animation business, shutting down the studios and writing off therelated assets. Aplix is reborn as an Internet of Things Startup Company with a paid-in
capital of 4.7 billion Japanese Yen (*1) –Aplix IP Holdings Corporation (headquartered in Shinjuku-ku, Tokyo; Ryu Koriyama, CEO &Representative Director; hereinafter “Aplix”.TSE:3727M) has announced the FY2015 3rd quarter results andhas revised the consolidated forecast for FY2015.
Aplix has completed the restructuring operation of selling off the game and animation business, shutting
down the studios and writing off the related assets. As part of this restructuring operation, Aplix has reduced
approximately 0.5 billion Japanese Yen of its annual office rent by relocating from its prior office in
Higashi-Shinjuku, which had an animation recording studio, live streaming studio, theater room and various
video and audio mixing rooms, to the Waseda University district, the place where Aplix's original technology
business originated. Further, Aplix has reduced a significant number of administration staff, along with thedomestic and international staff associated with its legacy embedded feature phone software business.
Finally, Aplix has shutdown operations of subsidiaries and branches in Beijing, Shanghai, Taipei and Seoul.
With our new Internet-of-Things business in rapid expansion mode, our customers have started to design
and manufacture products to be widely sold.. In order to provide needed network and information technology
expertise required to accelerate development, Aplix has started providing engineering services and project
management to our customers and their contract manufacturers (EMS and ODM) in both English andChinese.
To seize the opportunity of the rapidly expanding Internet of Things market, and with the aim of returning
to a profitable company in the following FY2016, Aplix is reborn as an Internet of Things "Startup" Company
with a paid-in capital of 4.7 billion Japanese Yen (*1). Since 2010, Aplix has been developing andmanufacturing wireless modules to connect home and office appliances to the Internet. Currently working
with more than 100 home and office appliance manufacturers actively developing Internet of Things
prototypes, Aplix has become the leading company with a huge advantage in experience and knowledge inconnecting a wide range of home and office appliances to the Internet.
With Aplix's Internet of Things solution, home and office appliances will become an integral part ofinnovative new e-commerce and information services, helping to create a better everyday lives for the usersof our customers' products, and generate new recurring revenues for our customers. The target market ofAplix’s Internet of Things solution is 70 million network-connected consumer products (*2) anticipated to beshipping annually within 5 years. Aplix's mission is to connect e-commerce and information services with

Aplix IP Holdings Press Release
consumers with Aplix's end-to-end Internet of Things solution, consisting of wireless modules, smartphone
applications and cloud services. The revenue generated by these solutions will be the main driver of Aplix'sfuture business growth.
*1: As of start of FY2015*2: forecast by HIS■ About the Aplix IP Holdings GroupThe Aplix IP Holdings Group operates its business in pursuit of its mission to enable people all over the world to enjoy more fulfilling
lives through software technologies. Its technology business offers two different kinds of beacons developed by Aplix – location
beacons and notification beacons. Provided as a location beacon, the “MyBeacon® Series” constantly transmits radio signals and isincreasingly used in many different business sectors, including food and drink services, apparel and fashion, distribution, real estate,leisure and entertainment, logistics and transport and tourism, as well as in public works and by local governments as a positional
information solution. As a notification beacon, the “OSHIRASE Beacon®”, which is embedded in equipment, sends out radio signals
only when it detects a predetermined status. It can be combined with all kinds of appliances, especially light electrical products, suchas water purifiers, humidifiers, electric fans and coffeemakers. In the publishing business, the Group has created numerous
well-received titles. One example is the “Broken Blade series”, which has sold a cumulative total of more than 3.2 million copies inbook form. Offering books and picture books for children in this business segment, HOLP SHUPPAN Publishing has released
popular books including the “Don’t Spill the Milk!”
Aplix IP Holdings website (Investor Relations): http://www.aplix-ip.com/
Aplix website (Technology Business): http://www.aplix.co.jp/■ Contact:
Aplix Corporation	  	  M2M Product GroupE-mail： m2m-group@aplix.co.jp

TEL：	  050-3786-1702■Inquiries:
Aplix IP Holdings Public Relations:	  	  E-mail： ir-info@aplix.co.jp* The names of companies and products included in this press release are trademarks or registered trademarks of their respectivecompanies.

Disclaimer: This English translation is for reference purposes only. In the event of any discrepancy between the Japanese original
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.