TSUGAMI : Listing on Hong Kong Stock Exchange of Overseas Subsidiary（94KB）

For Immediate Release

September 25, 2017

Company Name: TSUGAMI CORPORATION Representative: Takao Nishijima, Chairman and CEO (Stock Code: 6101, Tokyo Stock Exchange, First Section) Contact: Toshio Honma, Representative Director, CFO

Tel: +81-3-3808-1711

Notice of Listing on Hong Kong Stock Exchange of Overseas Subsidiary

TSUGAMI CORPORATION (the "Company") announces that its overseas subsidiary listed on the Main Board of The Stock Exchange of Hong Kong Limited today. The details are as follows.

1. Outline of listing company

   Name: Precision Tsugami (China) Corporation Limited (Chinese name: 津上精密機床(中國)有限公司）

   Location: PO Box 309, Ugland House, Grand Cayman, KY1-1104, Cayman Islands Stock code: 1651 (Hong Kong Stock Exchange)

   Representative: Donglei Tang, Executive Director, CEO

   Description of business: Manufacture and sales of precision machine tools (the Company's production subsidiary in China is the principal business entity)

   Other: The Company has been the controlling shareholder of the subsidiary with a 100% shareholding. After the listing, the Company will remain the controlling shareholder with a 70-75% shareholding by issuing new shares and selling part of the Company's shares in the subsidiary.

2. Financial impact

The sale of part of the Company's shares in the subsidiary at the time of listing will result in an extraordinary gain on sales of shares of subsidiaries in the non-consolidated results of the Company. The consolidated results, however, will not be affected since the Company will remain the controlling shareholder with a shareholding of more than 50% and the listing will be treated as a capital transaction.

This press release has been prepared for the sole purpose of publicly announcing the listing on the Main Board of the Hong Kong Stock Market, not for the purpose of soliciting investments within or outside of Japan.