GNI : forms joint venture with EPS in Japan focusing on medical device business

	October 7th, 2022
Company Name:	GNI Group Ltd.
Representative:	Director, Representative Executive Officer,
	President and CEO
	Ying Luo, PhD
	(Security Code: 2160, TSE Growth)
Contact Person:	General Manager,
	Business Management Department
	Akihiro Nakano
	(TEL. [phone])

GNI forms joint venture with EPS in Japan focusing on medical device business

GNI Group Ltd. (the Group) is pleased to announce that it has signed a binding MOU to form a joint venture (JV) with a unit of EPS Group (Shinjuku-ku, Tokyo; Representative Director: Hao Yan; hereinafter "EPS"). Through the existing medical device representation services provided for offshore companies, this JV will focus on introducing foreign medical device products, including biomaterials into the Japanese market. The new JV will be 60% owned by the Group.

The JV will be based in Tokyo with 9 staff and is projected to expand its staffing and customer base over time. The JV is expected to have a modest, but positive impact on the Group's financial performance and will be included accordingly under the Medical Device segment of our reported financials. We expect final details to be concluded by the end of this year or Q1 2023.

This JV represents the Group's small, but first significant step to establish an operating presence in Japan. Over time we expect to expand the JV's business and customer base to take advantage of our strong presence in the US and China. The medical device/biomaterial business has been a profitable cornerstone of the Group since 2017. We intend to leverage this new JV to aim for stronger growth of our medical device/biomaterial business segment in the coming years.

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About GNI Group, Inc.:

GNI Group is a global healthcare company listed on the Growth Board of the Tokyo Stock Exchange and engaged in drug discovery, pharmaceutical development, biomaterial development, clinical studies, manufacturing, and sales in both the United States and China. For more information, please visit our website below https://www.gnipharma.com/

About EPS Group:

The EPS Group is a healthcare solutions provider that has been handling all processes from drug discovery and development to sales, marketing, consulting, and various other solutions since its founding as a pioneer CRO in Japan in 1991. The Group broadening its businesses as well by also engaging in initiatives to bring new value to

pharmaceutical and medical device companies, hospitals, clinics, and academia through efforts that include expansion in China and the rest of Asia, big data and AI, and regenerative medicine. In 2021, the EPS Group launched an innovative medicine business and started services to support the clinical development of seeds originating at academic institutions and domestic and global biotech ventures and to support marketing in and

outside Japan. https://www.eps-holdings.co.jp/en/

This material contains statements concerning the current plans, expectations and strategies of GNI Group Ltd. (GNI Group). Any statements contained herein that pertain to future operating performance and that are not historic facts are forward-looking statements. Forward-looking statements may include, but are not limited to, words such as "believe," "plan," "strategy," "expect," "forecast," "possibility" and similar words that describe future operating activities, business performance, events or conditions. Forward-looking statements, whether spoken or written, are based on judgments made by the management of GNI Group, based on information that is currently available to it. As such, these forward-looking statements are subject to various risks and uncertainties, and actual business results may vary substantially from the forecasts expressed or implied in forward-looking statements. Consequently, investors are cautioned not to place undue reliance on forward-looking statements.

The information contained in this material does not constitute or form part of any offer for sale or subscription of or solicitation or invitation of any offer to buy or subscribe for any securities, nor shall it or any part of it form the basis of or be relied on in connection with any contract or commitment whatsoever. Any decision to invest in or acquire securities of GNI Group must be based wholly on the information contained in the preliminary offering circular issued or to be issued by GNI Group in connection with any such offer and not on the contents hereof.