September 6, 2019
For Immediate Release:
MTI Ltd.
Toshihiro Maeta,President and Chief Executive Officer
Listing: Tokyo Stock Exchange(First Section) [9438]
Contact: Hiroshi Matsumoto, Senior Managing Director
Tel: +81-3-5333-6323

Notice of Acquisition of Shares of MNES Inc. (Making it an Equity-method Affiliate)
MTI Ltd. (the “Company”) announces that the Board of Directors passed a resolution at a meeting on
September 6, 2019, that the Company would underwrite the third-party allotment of shares of MNES Inc.
(“MNES”) as described below. The Company’s shares of MNES will be 22.76% after this allotment and MNES
will become an equity-method affiliate of the Company.

1. Reasons for share acquisition
MNES is building and improving a new medical service infrastructure in the healthcare industry and isoperating businesses such as remote diagnostic imaging and diagnostic imaging system development. TheCompany decided to underwrite the third-party allotment of shares of MNES based on the prospect that thepartnership between the Company and MNES would allow MNES to increase sales of its services to medical
examination organizations across Japan and an alliance with the Company’s healthcare business would support
MNES in creating high value-added ICT services.
The Company will work to build ICT platforms in the medical and healthcare industries by enhancing
collaboration with MNES while implementing activities in the healthcare business.
2. Overview of MNES （As of September 6, 2019）
（1）

Name

MNES Inc.

（2）

Address

1-2-27 Shinonome-honmachi, Minami-ku, Hiroshima-shi（3）

Name and title of representative

Naoyuki Kitamura, CEO（4）

Nature of business（5）

Capital stock

100 millions of yen（6）

Date of establishment

October 10, 2000

Major shareholders and

DELTA CAPITAL RESOURCES LTD. 74.19%

shareholding ratios

Naoyuki Kitamura（CEO） 4.59%（7）

Relationship between the listed（8）

company and the relevant
company

Remote diagnostic imaging business and development of
medical support system, LOOKREC, among other businesses

CapitalThere is no capital relationship between therelationshiptwo companies that is required to be disclosed.

Human

There is no human relationship between therelationshiptwo companies that is required to be disclosed.

1Business

There is no business relationship between therelationshiptwo companies that is required to be disclosed.

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

3. The number of acquired shares and status of shareholding ratio before and after acquisition（1）

Number of shares owned before acquisition

0（2）Type and number of shares to be acquired

Common stock（3）

Number of shares owned after acquisition

1,655shares

1,655 shares(The number of voting rights: 1,655units)（Ratio of voting rights holding: 22.76%）
Note: The purchase price is not disclosed based on consultation with MNES.

4. Schedule（1）

Date of MTI’s Board of Directors’ resolution

September 6, 2019（2）

Date of stare acquisition

September 20, 2019 （Scheduled）

5. Future outlook
The acquisition will have a very minimal impact materially on the Company’s consolidated business results
for the fiscal year ending September 30, 2019.

(Reference)
Consolidated financial results forecast for the current fiscal year (Announced on October 30, 2018) andconsolidated results for the previous fiscal year(Unit: millions of yen)

Forecasts for consolidated
financial results（September30, 2019）
Consolidated results for theprevious fiscal year（September 30, 2018）

Consolidated

Consolidated

Consolidated

Consolidated

Net sales

Operating income

Ordinary income

27,000

2,900

3,500

2,000

29,075

3,218

3,116

1,629

Profit attributableto owners of parent

Disclaimer Regarding Forecast and Projections
This report contains forward-looking statements on business performance based on the judgments, assumptions
and beliefs 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 ofrisk and uncertainty include unpredictable elements that could arise from future events.

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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
Futaki, Investor Relations OfficeTel: +81-3-5333-6323
Fax: +81-3-3320-0189
E-mail: ir@mti.co.jp
URL： https://www.mti.co.jp/eng

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