August 7, 2017

Company Name:

GMO Internet, Inc.
(TSE First Section, Code: 9449)

Address:

26-1 Sakuragaoka-cho Shibuya-ku Tokyo JAPAN

Representative:

Masatoshi Kumagai, CEO and Representative Director

Contact:

Masashi Yasuda, Chief Financial Officer

Telephone:+81 3 5456 2555

URL:

http://www.gmo.jp/en

Notice of Share Acquisition of Shift-One, Inc. by GMO Internet Consolidated Subsidiary,
GMO AD Partners
GMO Internet, Inc. consolidated subsidiary, GMO AD Partners, Inc. (JASDAQ: 4784) agreed at the meeting ofthe Board of Directors held today that it would acquire a 100% stake in Shift-One, Inc.

1. Purpose of the acquisition of shares
GMO AD Partners, a core company in GMO Internet’s Online Advertisement and Media segment, is driving theenhancement of technological capability and is strengthening the development of in-house products, aiming at
sustainable growth as a technology-oriented online media and advertisement company. In online advertisement
market, growth of advertisement for smartphones has accelerated mobile shift, ad technology has advanced, anddemand in good-quality creative production is expanding rapidly.
In this market environment, GMO AD Partners decided to acquire a 100% stake in Shift-One to enhance creative
production in the field of video advertisements.
Shift-One is a start-up established in 2012, producing video content by combining still images, and offering
motion comics. Shift-One has launched entertainment communication business in addition to motion comic andother types of video solution businesses, and has also launched SUTV, an application for making a video withsound, developing the businesses.
GMO AD Partners is catching up on product trends and consumer demands in online advertisement market,and strongly believes that acquiring Shift-One will contribute to the growth in video advertisement area and unleash
synergies between existing businesses.

12. Summary of Company to Make Acquisition(1)

Company Name

GMO AD Partners Inc.

(2)

Address

1-16-3 Dogenzaka, Shibuya-ku Tokyo

(3)

CEO

Makoto Hashiguchi(4)

Business Description

Heading consolidated subsidiaries through holding their shares, theformulation of a consolidated management strategy, management,
and other related operations.

(5)

CapitalJPY 1,301 million (as of June 30, 2017)(6)

Date Established

September 1999

3. Indirect Subsidiaries to be Transferred(1)Company NameShift-One, Inc.

(2)

Address

3-27-8 Kanda-Jimbocho, Chiyoda-ku Tokyo(3)

CEOHiroyuki Taniguchi(4)

Business Description

Production and sales of video contents(5)

CapitalJPY 624 million(6)

Date EstablishedMay 28, 2012

(7)

Major Shareholders &Ownership Ratio

Innovation Network Corporation of Japan(8)

Related Party
Relationships

There are no reportable capital, executive, transactional or related
party relationships between GMO Internet and Shift-One. Further,
there are no reportable capital, executive, transactional or related
party relationships between affiliates of the two companies.

(9)

Operating Results and Financial Condition in the Three Most Recent Fiscal Years(JPY 1,000s)

Fiscal Year

FYE12/2014

64.72%

FYE12/2015

FYE12/2016

Net Assets

801,720

279,818

91,033

Total Assets

833,616

320,435

104,02857

20

6

68,942

70,69196,308Operating Profit-196,740-391,642-183,472

Ordinary Profit-194,546-390,875-181,907

Net Profit-339,566-521,901-188,784

Net Profit per Share-24-37-13

Dividends per Share000

Net Assets Per Share
Revenue2

4. Summary of concerned party from which shares are acquired(1)Company Name

Innovation Network Corporation of Japan, Inc.

(2)

Address

1-4-1 Marunouchi, Chiyoda-ku Tokyo

CEOToshiyuki Shiga

COOMikihide Katsumata(3)

Business activities and their solutions based on Industrial(4)

Business Description(5)

CapitalJPY 150,005 million(6)

Date Established

July 17, 2009

(7)

Net Assets

JPY 1,100,925 million(FYE3/2017）(8)

Total Assets

JPY 1,852,157 million(FYE3/2017）(9)

Major Shareholders &Competitiveness Enhancement Act.

Minister of Finance

95.3%

Ownership Ratio
There are no reportable capital, executive, transactional or relatedparty relationships between GMO Internet and Innovation Network(10)Related Party Relationships

Corporation of Japan. Further, there are no reportable capital,executive, transactional or related party relationships between
affiliates of the two companies.

*Regarding concerned party, joint sellers include multiple corporations and persons but individual ownership ratios
are so low that they are omitted. All details shown in the above table are those of Innovation Network Corporationof Japan, Inc.

5. No. of Shares to be Acquired, Acquisition Price, Ownership Ratio Before and After Acquisition
0 shares (voting rights：0)(1)

No. of shares held prior to acquisition(2)

No. of Shares to be Acquired

13,905 shares (voting rights: 13,905)(3)

Acquisition Price-(4)

No. of shares held after acquisition(% of total voting rights: 0%)13,905 shares (voting rights：13,905)(% of total voting rights: 100.0%)*GMO AD Partners and its consolidated subsidiary will hold the shares acquired.
*GMO AD Partners will not disclose acquisition price due to confidentiality requirements.

3

6. Schedule
Board Decision:

August 7, 2017Execution of Agreement

August 7, 2017

Transfer of Shares

August 9, 2017

7. Future Outlook
The particulars of the disclosure have limited impact on the forecasts of this term.

(Reference) Consolidated Results Forecast (as of February 6, 2017)(JPY millions)
Current Forecast

Consolidated

Consolidated

Consolidated

Profit Attributable toNet Sales

Operating Profit

Ordinary Profit

Owners of the Parent

145,000

19,00018,5008,000

135,026

17,017

16,6867,234(FYE12/2017)
Previous Term Results(FYE12/2016)4