(Progress of Disclosure Matters) Notice Regarding the Progress of Tender Offer for Our Shares by MM Holdings Co., Ltd.

Progress of Tender Offer and Suspension Recommendation

We had announced the scheduled start of the tender offer by MM Holdings Co., Ltd. for the acquisition of all our common shares; however, on April 22, 2026, we received an acquisition suspension recommendation from the Minister of Finance and the Minister of Economy, Trade and Industry pursuant to Article 27, Paragraph 5 of the Foreign Exchange and Foreign Trade Act. The recommendation reasoned that the high-performance machine tools we manufacture have a high possibility of military diversion, and that access to sensitive information by the tender offeror raises concerns regarding national security.

Future Responses and Consideration of Shareholder Return Measures

The tender offeror is scheduled to notify whether they accept the recommendation by May 1, 2026, and we are currently considering our response. The tender offer agreement has not been terminated and remains valid. Additionally, we are exploring all options including corporate value enhancement measures and strengthening shareholder return policies through increased dividends and share buybacks.