(Translation)
January 31, 2017
Company Name
Representative

EPS Holdings, Inc.
Yan Hao, Chairman &CEO

Stock Code4282, TSE First Section

Contact

Shuzo Orihashi, Director & Executive Corporate Officere-mail

ir@eps.co.jp

Announcement of Reorganization of Group Companies in the CPO Business Segment
EPS Holdings, Inc. (hereinafter referred to as “the Company”) resolved at the meeting of its Boardof Directors today, to conduct a reorganization of group companies in the CPO(*1) business segment
accompanied by the merger of the Company’s fully-owned consolidated subsidiaries, EPI Japan Co.,
Ltd. (hereinafter referred to as “EPI”) and J-CRSU Co., Ltd. (hereinafter referred to as “J-CRSU”) on
April 1st 2017. Details are as follows;

1. Objective of the Reorganization
EPS group has basic philosophy of “We will contribute to advancement of the healthcare
industry by providing high-value-added solutions to our clients.”, and developing business in 6segments.
In the CPO Segment, which is the newest of the 6 segments and established in Oct, 2016, wehave been developing business mainly by EPI, which was reorganized by separating the clinicalresearch division of EPS, and J-CRSU, which was established inheriting the business of NonProfit Organization.
We have decided to merge EPI and J-CRSU, as the future images of two companies areoverlapping, and the specialty business has complementary relationship.
EPI and J-CRSU will be integrated by absorption-type merger, and EPI (which will change its
name as EP-CRSU, hereinafter referred as the “New Company”) become the surviving company.
Object of this merger are as follows;Secure the necessary scale to meet diversifying needs of customers.

Hire experienced human resources and build a management system in the ClinicalResearch business (including Investigator initiated clinical trial), to provide highly
specialized services.

Stabilize the management base, increase efficiency, and strengthen management
skills by establishing a core company in the CPO business.

Strengthen the management foundation for growth of business over the medium tolong term.
Promote and develop clinical research, one of the growth engines of our business, mainly by
New Company, to achieve the medium-term management plan.
(*1: CPO: Clinical Process Outsourcing. CRO Business specialized for Clinical Research.)

2. Outline of the Merger（１） Date of the merger (effective date)
April 1, 2017 (Scheduled)（２） Method of the merger
J-CRSU will be dissolved by the absorption-type merger method, and with EPI being thesurviving company.
（３） Allocation resulting from the merger
As this is an absorption-type merger with the Company's fully-owned consolidated subsidiary,no shares will be allotted through the Merger and no consideration will be paid with respect tothe Merge.
（４） Treatment of the dissolving company's stock options and bonds with stock options associatedwith the Merger
Not applicable.

3. Outline of the Merging Companies①Registered trade

Surviving company

Company to be merged

EPI Japan Co., Ltd.

J-CRSU Co., Ltd.

6-19,Ogawamachi,Shinjuku-6-19,Ogawamachi,Shinjuku-ku,Tokyoku,Tokyo

Representative Director

Representative Director

Takehisa Yamada

Takehisa Yamada

Operations related to Clinical

Operations related to Medical

Research and Investigator

Research Involving Humaninitiated clinical trial, as follows;

Subjects, as follows; Carry out planning Carry out planning Support an operation

 Support an operation

 Information gathering Information gathering Data management and Data management andname②Location of HeadOffice③Title and name ofRepresentative④Business description

provision

provision

 Consulting

 Consulting⑤Capital

100 million Yen

100 million Yen⑥Date established

December 27,2013

October 21, 2015

⑦Fiscal year end

September 30

September 30⑧Employees

78（December, 2016）

92（December, 2016）⑨ Principal shareholder,

The Company 100%

The Company 100%and stockholding ratio

4. Post-merger status (Plan)
Registered trade name

EP- CRSU Co., Ltd.

By this merger, there will be no change of the head office location, a title and the name ofrepresentative director, business description, capital, and an accounting period and principal
shareholder (and stockholding ratio).

5. Future Outlook
There will be no impact on the Company’s consolidated financial results since the merger is amerger between the wholly owned subsidiaries of the Company.