News Release:

EPS Corporation(4282 TSE 1st section)
July 28, 2014

Notification of Company Separation (Simplified Division)
According to a meeting of the board of directors of our company, held on July 26, 2014, it has been decided
that EPS EKISHIN Co, Ltd.’s operations in China (referred to as EPS EKISHIN below) will be transferred to
an intermediate holding company, effective as of October 1, 2014 (tentative). The details of this transaction
are as follows.

Moreover, the spun-off company will be a wholly owned subsidiary resulting from a simplified
absorption-type split process, for which we will disclose about it, omitting some contents and disclosures.

For the Record
１．Purpose of the Company Separation
Our company and the EPS group has perceived the growth potential from EKISHIN’s (Chinese) operations,which are only second to domestic operations and have become a source of extensive expansion. Moreconcretely, our company has invested in over 10 affiliated companies within China, sequentially establishingthem and then providing them investment funds, leading to the creation of EPS EKISHIN as the Chinesedivision of our company in October last year.
Furthermore, according to the “Notice of Establishment of a Split-Preparation Company to Accompany
Conversion into a Holding Company” we released on June 23, 2014, the authorities and duties of eachbusiness segment, including CRO, SMO, CSO, GR (Global Research) and EKISHIN’s (Chinese) operations
are clarified, and we are considering/implementing the transition to a new organizational structure that willallow more autonomous operations on each segment.
Currently, each company belonging to EKISHIN’s (Chinese) operational segment under the jurisdiction ofEPS EKISHIN is integrated, permitting a more integral management.
Regarding EKISHIN’s (Chinese) operations, the equity capital held by the Company will be split into three
corporate entities: ET-Medical Equipment(Nantong) Co., Ltd., EPS Medical Technology(Nantong) Co., Ltd.
and GNI-EPS（HONGKONG）HOLDINGS LIMITED, as well as EPS (China) Co., Ltd. under which theCompany will transfer the equity interests it holds.

Hereafter, EPS EKISHIN will strengthen its supervision and management capabilities working as anintermediate holding company. By performing a reasonable cost management, EKISHIN’s (Chinese)
operations segment will lead to faster revenues, and will permit us to continue working on ways to implement
capital and investment strategies that are more suitable for the scale and structure of the business.

<Structure of EKISHIN’s (Chinese) operation segments (Numbers indicate equity ratio)>【Before the Division/Transfer】【After the Division/Transfer】

２．Summary of Company Separation(1)Company Separation Schedule
Separation Agreement approved by Board of Directors

July 28, 2014

Execution Date of the Separation Agreement

During July 2014 (tentative)

Effective Date of Separation

October 10, 2014 (tentative)(2)Form of Company Separation
The Company will be spun off under the absorption-type split system proceedings, and the resulting company,
EPS EKISHIN, will be a 100% owned subsidiary that will serve as the successor entity.

(3)Allocation related to the Company Separation
EPS EKISHIN will issue 2,000 shares of common stock upon company separation, all of which will beallotted to our Company.

(4)Handling of Stock Acquisition Rights and Bonds with Stock Acquisition Rights related to the CompanySeparation
Not applicable.

(5)Increases or decreases in Capital resulting from the Company Separation
The separation will not cause any increases or decreases in the company’s capital.

(6)Rights and Obligations of the resulting Successor Company
This company separation implicates equity interest transfers to our affiliated companies in China, for which
the new successor company will not carry over any debt from EPS EKISHIN.

(7)Estimations of Financial Obligations

It has been determined that EPS EKISHIN, on its character of successor company, will have no issues
fulfilling its financial obligations as of the effective date of the Separation Agreement.

3. Summary of the parties involved in the Company Separation/Transfer

Corporate Name
Address of the Head Office

Company to be Separated

Successor Company(As of April 1, 2014)(As of October 1, 2013)

EPS Corporation

EPS EKISHIN Co., Ltd.

1-8 Tsukudo-cho, Shinjuku-ku, Tokyo

1-8 Tsukudo-cho, Shinjuku-ku, Tokyo

CEOTokyo

Yan Hao

Representative

President & CEO Yan Hao
President and CEO Shinro Tashiro

Business

Support services for clinical developments

Managing, support EKISHIN’soperations

CapitalDate of Foundation

1,875 million yen

100 million yen

May 30, 1991

October 1, 2013

Number of shares outstanding 36,160,000 shares
Accounting period ends

2,000 shares

September 30

September 30

Y AND G CO., LTD

26.94％

JAPAN TRUSTEE SERVICES BANK
5.96％

Major Shareholders and Equity
Ratio

100％

BBHFORMATTHEWSASIA
DIVIDENDFUND(as of March 31, 2014)

EPS Corporation

5.96％

GOLDMAN,SACHS&CO.REG
3.61％
SUMITOMO LIFE INSURANCE, CO.
3.32％

Operating results and financial
position
Net assets

As of September , 2013

As of October 1, 2013(consolidated)
20,060 million yen

100 million yen

Total assets

30. 323 million yen

100 million yen

Net assets per share

488.91 yen

50,000 yen

Sales

37,584 million yen―

Operating income

3,497 million yen―

Income before taxes

3,540 million yen―

Current net income

1,709 million yen―

Net earnings per share

47.81 yen―

Note: Regarding per share data, please notice that it already takes into account the stock split performed by theCompany, in which each ordinary stock share was split into 100 shares on April 1, 2014.

4. Overview of the equity interest division(1)Equity Interest to be divided
The whole equity interest of ET-Medical Equipment(Nantong) Co., Ltd., EPS Medical Technology(Nantong)Co., Ltd., and GNI-EPS（HONGKONG）HOLDINGS LIMITED.
(2)Operating Results of the Departments to be divided
The totality of equity interest will be transferred, for which there are no implications related to this.

(3)Assets or liabilities to be divided and their corresponding amounts
Involved assets

1,432 million yen

Debt to be split- million yen

5. State of Stock Listings after Company Separation
There will be no changes related to the company’s trading name, address of head office, name or title ofrepresentatives, business, capital or fiscal period according to this separation.

6. Expected Business Impact caused by the Separation

The current consolidated results of the company will suffer no impact from this separation.

End