October 30, 2017
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 Posting of Extraordinary Losses
MTI Ltd. (hereinafter the “Company”) hereby announces that it will recognize extraordinary losses in thefinancial statements for the fourth quarter (July 1,2017 – September 30, 2017) of the fiscal year ended
September 30, 2017. An outline of the extraordinary losses is as follows.
1. Posting of extraordinary losses
Mainly due to the following matters, extraordinary losses of 816 millions of yen on a non-consolidated basis and291 millions of yen on a consolidated basis will be posted.
(i)

Posting of valuation loss on shares of subsidiary and valuation loss on shares of affiliate on a
non-consolidated basis
With respect to shares of Climb Factory Co., Ltd.*, a consolidated subsidiary, and StaGen Co., Ltd., anaffiliate, the Company will recognize a valuation loss on shares of subsidiary of 462 million yen and avaluation loss on shares of affiliate of 150 million yen, by taking into account the business environment,
future outlook, etc. of both companies. Both the valuation loss on shares of subsidiary and valuation loss onshares of affiliate will be offset in consolidated accounts.

(ii) Posting of impairment loss (both on a consolidated and a non-consolidated bases)
The Company will recognize an impairment loss on retirement of non-current assets (software) of 193
million yen on a non-consolidated basis and 230 million yen on a consolidated basis.
* The Company conducted an absorption type of merger of Climb Factory Co., Ltd. as of October 1, 2017.
[Reference]
Breakdown of non-consolidated extraordinary losses for the fourth quarter(Unit: millions of yen)
Loss on valuation of shares of subsidiaries:
462
Impairment loss:
193
Loss on valuation of shares of subsidiaries and associates:
150
Loss on valuation of investment securities:
9
Loss on retirement of non-current assets:
1
Breakdown of consolidated extraordinary losses for the fourth quarter(Unit: millions of yen)
Impairment loss:
230
Loss on valuation of investment securities
45
Loss on valuation of shares of subsidiaries and associates:
11
Loss on retirement of non-current assets:
3
2．The resulting impact of the losses operating results
The resulting impact of the extraordinary losses on operating results is as described in the Summary of1

Consolidated Financial Results for the Fiscal Year ended September 30, 2018 (Japanese AccountingStandards) announced today.
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.

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

2