Notice of Share Buyback and Disposition of Treasury Stock with Restrictions on Transfer

Overview of Capital Policy

DTS Corporation, in conjunction with the introduction of a Restricted Stock Compensation Plan, disposed of 33,645 shares of treasury stock at 977 yen per share on July 15, 2026. The target of disposal includes directors who are not Audit & Supervisory Committee Members and executive officers, with a long-term transfer restriction period until July 15, 2056. The purpose of the disposal is to enhance incentives and promote shared value with shareholders; under the system, the shares are restricted from transfer or collateralization and will be解除 if certain conditions are met. The disposal price is based on the market stock price, established at a reasonable valuation.

Impact on Shareholders and Future Outlook

The recent disposal of treasury stock does not result in share dilution and aims to strengthen the long-term incentive system. Since the transfer restriction period limits trading of the shares, there will be no direct change in shareholders' ownership ratios. Moving forward, the company will continue to focus on the implementation of the system and enhancing long-term corporate value. Depending on the effectiveness of the system, it is expected to contribute to sustainable growth and increased shareholder value.