October 28, 2019
For Immediate Release:
MTI Ltd.
Toshihiro Maeta,President and Chief Executive Officer
Listing: Tokyo Stock Exchange(First Section) [9438]
Contact: Hiroshi Matsumoto, Managing Director
Tel: +81-3-5333-6323

Notice of Conversion of Pocket Queries Inc. into an Equity-Method Associated Company
MTI Ltd. (the “Company”) announces that its Board of Directors passed a resolution at a meeting on October28, 2019, that the Company would underwrite the third-party allotment of shares of Pocket Queries, Inc.
(“Pocket Queries”) as described below. The Company will have a 21.43% stake in Pocket Queries after thisallotment and Pocket Queries will become an equity-method associated company.
1. Reason for conversion
Because of progress on the dissemination of the fifth generation cellular network technology (“5G”), evolution
in mobile content services is expected and anticipation for its application in the industrial field is rising.
In this environment, Pocket Queries has established a track record of developing operational software using
3D-CG and AR/VR mainly in the game field. Recently, it is providing and promoting research anddevelopment projects for Mixed Reality technology.
Believing that the Company’s collaboration with Pocket Queries will be able to create high value-added ICT
services suitable for the 5G era through the technical capabilities of Pocket Queries, the Company has decided
to underwrite a third-party allotment of shares to be conducted by Pocket Queries.
2. Outline of Pocket Queries (as of September 30, 2019)（1）

NamePocket Queries Inc.

（2）

Address

17-12, Honmachi 1-chome, Shibuya-ku, Tokyo

（3）
（4）

Name and title ofrepresentative
Nature of business

Nobuhiko Sasaki, Representative Director
Development of practical applications of VR/AR/MR, development andoperation of 3D and other games and production of 3D-CG（5）

Capital stock

109 million of yen（6）FoundedAugust 20, 2010

Major shareholders andNobuhiko Sasaki 36.44%

shareholding ratios

Queri Holdings, Ltd. 25.42%

Relationship between theCapital

The Company holds 6.78% of shares of Pocket

listed company and therelationship

Queries.

relevant company

Human

There is no human relationship between the two（7）（8）

1relationshipcompanies that is required to be disclosed.

Business

The Company places orders related to application

relationshipdevelopment with Pocket Queries.

Note: The business results and financial position of Pocket Queries in the last three years are not disclosed because it is not a
publicly traded company and based on consultation with Pocket Queries.

3. Details of capital increase by way of third-party allotment of shares（1）

Capital contribution ratio

8,000 shares

before capital increase(Number of voting rights： 8,000 shares)(Voting rights ratio： 6.78%)（2）

Number of share acquisition

Common stock 22,000 shares（3）

Capital contribution ratio

30,000 shares

after capital increase(Number of voting rights： 30,000 shares)(Voting rights ratio： 21.43%)

Note: The purchase price is not disclosed based on consultation with Pocket Queries.

4. Schedule（1）

Day of MTI’s Board ofOctober 28, 2019

Directors’ resolution（2）

Day of stock acquisition

November 8, 2019 (Scheduled)

5. Outlook for the futureThis case will have a very minimal impact materially on the Company’s consolidated business results for thefiscal year ending September 30, 2019.
The forecast for consolidated business results for the fiscal year ending September 30, 2020, is currently being
prepared, and the Company will announce it in the Summary of Consolidated Financial Results for the Fiscal
Year ended September 30, 2020 (Japanese Accounting Standards), to be published on October 30, 2019.
Disclaimer Regarding Forecast and Projections
This report contains forward-looking statements on business performance based on the judgments, assumptions andbeliefs of management using the information available at the time. Actual results may differ materially due tochanges in domestic or overseas economic conditions, changes in internal or external business environments, oraspects of uncertainty contained in the forecasts, latent risks or a variety of other factors. In addition, factors of risk
and uncertainty include unpredictable elements that could arise from future events.
Note: This document has been translated from a part of the Japanese original for reference purposes only. In
the event of any discrepancy between this translated document and the Japanese original, the original shallprevail. The Company assumes no responsibility for this translation or for direct, indirect or any other formsof damages arising from the translation.
Contact information for inquiries
Investor Relations OfficeTel: +81-3-5333-6323
Fax: +81-3-3320-0189E-mail: ir@mti.co.jp
URL： https://www.mti.co.jp/eng

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