Sun Frontier Fudousan Co., Ltd. (the "Company") hereby announces that its Board of Directors resolved to execute a business alliance agreement with Advantage Advisors Co., Ltd. ("Advantage Advisors"). Purpose of Business Alliance: Founded in 1999, this year corporate group is approaching its 25th anniversary. Since its founding, the corporate group has consistently upheld "Altruism" (i.e., a mindset that places the highest priority on how much one can contribute to people and society through one's work throughout life, and a spirit of consideration for others) as corporate moto, and the corporate group has strived to manage itself with the philosophy of "Protect all employees, pursue the material and intellectual happiness, with the heart of coexistence contribute to the prosperity of society and humankind." In particular, the corporate group is continuing to focus its efforts toward solving three important issues for realizing a sustainable society (materiality): "environmental protection," "regional revitalization," and "human resource development." Over the last several years, the promising and talented individuals in corporate group have grown by overcoming the global financial crisis and the coronavirus pandemic, and as there is approximately a year and a half remaining in the current mid-term management plan, which will end in the fiscal year ending on March 31, 2025, the corporate group is aware that now the time has come to accelerate growth strategy for the future while also drawing up next mid-term management plan.

The business of corporate group is comprised of the following four segments. First, have the "Real Estate Revitalization Business" and the "Real Estate Service Business," which aim to conduct urban development through the revitalization and efficient use of existing real estate. Next, have the "Hotel and Tourism Business," which is tied to the promotion of regional development.

Finally, the overseas development and management business, construction business, and the like fall under "Other" segment. In the midst of these segments, while original "Real Estate Revitalization Business" has high social significance from both an environmental and economic perspective, the "Real Estate Service Business," which serves as a platform, enhances customer base, and the synergy between these two businesses will result in the corporate group further expanding existing businesses, which have established pioneering positions. At the same time, the corporate group will meticulously and boldly take on challenges for new businesses in the field.

In addition, the "Hotel and Tourism Business," which engages in hotel development and management businesses, is aiming to have 10,000 guest rooms in operation in the next 10 years, through the further refinement of the business hotels the corporate group established through success in its past challenges and by improving "heartwarming and fun hotel" brand. Furthermore, will deepen the possibility of growth opportunities through M&A in all of business segments. Through these policies, are endeavoring to grow the business of the corporate group and improve market competitiveness while also continuing to find solutions to the important issues mentioned above.

In order to steadily advance each of the abovementioned measures, the corporate group believes that procuring investment funds and M&A funds for the hotel development business and others will be necessary, and also that acquiring a high level of external professional support will be effective. Under these circumstances, the corporate group has received a proposal from Advantage Advisors (Address: Toranomon Towers Office 4-1-28 Toranomon, Minato-ku, Tokyo; Representative Director: Taisuke Sasanuma) regarding a business alliance with the corporate group in which Advantage Advisors would provide information, introduce clients, and provide business support as well as procure financing through third-party allotment for funds for which Advantage Advisors provides services. After careful consideration of Advantage Advisors' extensive track record in dealing with listed companies and the specifics of their proposal, the corporate group has determined that the proposal from Advantage Advisors is the most appropriate in order to improve the corporate value of the corporate group because it can receive from Advantage Advisors growth support consistent with the corporate group's mission and needs when tackling the management issues of which the corporate group is aware, and because the corporate group considers the issuance of the Bonds with Share Acquisition Rights by way of third-party allotment to be the most appropriate fundraising method.

Therefore, the corporate group has resolved to conduct the financing through a third-party allotment and to execute a business alliance agreement with Advantage Advisors.