Acquisition of SYSCOM (USA) Shares to Expand IT Service Business in North America

Will enhance IT support framework for Japanese-affiliated companies in North America

ITOCHU Techno-Solutions Corporation (President and Chief Executive Officer: Satoshi Kikuchi; head office: Chiyoda-ku, Tokyo) will acquire 33.7% of shares in SYSCOM (USA) INC. (President & CEO: Seishi Sato; head office: New York, New York, USA; hereinafter “SYSCOM (USA)”) via its North American subsidiary ITOCHU Techno-Solutions America, Inc. (President and CEO: Tadaaki Otsuka; head office: Santa Clara, California, USA), with the aim of expanding its IT service business operations in North America.

As of 2012, ITOCHU Techno-Solutions has commenced a full-scale global expansion of its operations in the ASEAN (Association of Southeast Asian Nations) and North American regions, and has provided support for both local companies and Japanese-affiliated companies operating overseas. Under its three-year medium-term management plan “Opening New Horizons,” which began as of this fiscal year, ITOCHU Techno-Solutions has made the expansion of global business one of its key policies. In North America, primarily through its subsidiary ITOCHU Techno-Solutions America, ITOCHU Techno-Solutions is conducting surveys and proactive R&D activities in relation to the latest cutting-edge technologies and market trends, and seeking to expand its local SI business operations (with a primary focus on Japanese-affiliated companies) by enhancing its SI framework.

SYSCOM (USA) has been engaged in SI business operations in the United States for over 28 years, and provides total services ranging from consulting to operational and maintenance support throughout the United States. It is currently also investing its efforts into cloud services and ERP business solutions.

ITOCHU Techno-Solutions America and SYSCOM (USA) signed a business partnership agreement in 2016, under which they conduct joint sales operations and collaborate to provide solutions. The acquisition of shares on this occasion will serve to further enhance collaborative efforts between the two companies, and create new business opportunities in areas such as system building, operation and security services.

In April 2018, ITOCHU Techno-Solutions also commenced a partnership with British SI company Newton Information Technology Ltd. (hereinafter “Newton IT”) regarding IT service business in Europe. Moving forward, ITOCHU Techno-Solutions and its group companies will work in collaboration with SYSCOM (USA) and Newton IT to achieve global-level customer support capabilities covering North America, Europe, ASEAN and Japan.

<Company overviews>

1) SYSCOM(USA) Inc.

Name                               SYSCOM (USA) Inc.

Established                      1 Exchange Plaza 55 Broadway, 11th Floor New York, NY

                                         10006 U.S.A.

Representative                Seishi Sato (President & CEO)

Paid-in-Capital                 3,200,000 USD

Number of Employees     120 (As of July 31, 2018)

Main Business Lines        SI solutions, business solutions, cloud solutions,
                                         systems operation, maintenance and customer support

2) ITOCHU Techno-Solutions America, Inc.

Name                             ITOCHU Techno-Solutions America, Inc.

Head Office                   3945 Freedom Circle, Suite 640 Santa Clara, CA
                                       95054 U.S.A.

Established                    1990

Representative               Tadaaki Otsuka (President and  CEO)

Paid-in-Capital                5,400,000 USD
                                        (ITOCHU Techno-Solutions 70%, ITOCHU 30%)

Number of Employees    32 (As of July 31, 2018)

Main Business Lines       IT infrastructure building, provision of operational and
                                        maintenance services for IT infrastructure, export of
                                        IT-related products, information gathering, research and
                                        marketing activities, etc.