JAFCO : Announcement regarding Acceptance of Private Placement by Medical Support Co., Ltd.

Translation of the Japanese press release

JAFCO Co., Ltd.

Contact: Investor Relations

1-23-1 Toranomon, Minato-ku, Tokyo 105-6324 Japanhttp://www. jafco.co.jp/english/

Tel: [phone]

October19, 2018

JAFCO Accepts Private Equity Placement by Medical Support Co., Ltd.

JAFCO Co., Ltd. has announced that JAFCO-managed funds (JAFCO SV5 Investment Limited Partnership and JAFCO SV5-STAR Investment Limited Partnership; hereafter referred to as "JAFCO"), accepted private placement of equity by Medical Support Co., Ltd. (head office: Meguro-ku, Tokyo; hereinafter "the Company").

The business environment surrounding dental clinics has become highly competitive because of an increase in new openings despite falling population. The number of bankruptcies is climbing as a result.

In the dental practice industry, the three deep-rooted issues (1. Long-standing business practices followed by a large number of private practitioners; 2. Chronic industry-wide personnel shortage; 3. Limited user convenience due to slow introduction of IT systems) remain unsolved.

Amid such circumstances, business opportunities to provide consulting services for dental clinics and promote a group practice for private practitioners are increasing.

The Company has the potential to solve the aforementioned issues and revitalize the dental practice industry through the following measures:

• 1. Promote a group practice through new openings, etc. to dental clinics for which it offers consulting services;

• 2. Offer flexible working solutions for dentists and dental hygienists who work at clinics where long working hours are the norm, and promote work style reforms to solve their chronic overwork problem;

• 3. Improve user convenience by introducing IT tools to dental clinics.

JAFCO provides support to expand the Company's business by capitalizing on its insight, expertise, and network in the healthtech sector that it has built up over the years.

About the Company

Company name	Medical Support Co., Ltd.
Business line	Consulting for dental clinics related to management, opening, operation, organizational administration, and recruiting