PR TIMES,Inc.

Since April 24, 2025, unauthorized third-party access to servers and cyberattacks have occurred, and there is a possibility that held information—centered on personal information and pre-announcement press release information—has been leaked. The unauthorized access route has already been blocked and a damage report has been accepted by the relevant police station, but there are concerns about the impact on business performance and social credibility. As recurrence prevention measures, a review of WAF settings and migration to a new administrator screen are planned within fiscal year 2025.

The Group handles customers' pre-disclosure information and personal information, and bears the risk of information leakage due to system vulnerabilities, computer viruses, unauthorized external intrusion, or errors by officers and employees. The Group has obtained Privacy Mark certification (acquired November 2009) and ISMS "ISO27001" certification (acquired March 2023) and has implemented countermeasures, but if an information leak occurs, it could have a material impact on business performance and social credibility.

Corporate advertising and public relations budgets tend to be adjusted in line with economic conditions, and if economic sentiment deteriorates significantly, it could directly impact the Group's business performance. The Press Release Distribution Business depends on corporate PR budgets, creating a risk that demand could sharply decline during an economic downturn. The securities report does not describe specific countermeasures.

Development of press release distribution sites is relatively easy to enter for companies with planning and development capabilities, creating a risk that competition for customer acquisition will intensify due to the rise of new entrants. If it becomes difficult to maintain competitiveness or advantages, this could impact the Group's business and performance. In addition, the possibility cannot be ruled out that a change in the policy of the parent company, the Vector Group, could result in the creation of a competing service from within the group.

In the Group's business environment, which is based on internet-related technology, new technologies and services are being introduced one after another, and change is rapid. If the Group falls behind in responding to technological innovation, this poses a risk of reduced competitiveness, in addition to the possibility that the amount of investment in systems or human resources required to respond to rapid technological innovation may increase. Continuous technology investment is essential to continue timely and appropriate press release distribution.

If system trouble occurs due to server outages from excessive access, network equipment failure, natural disasters, accidents, fires, etc., it could impede the provision of information to customers and impact business performance. The Group has implemented countermeasures such as server load balancing, continuous monitoring of operational status, and regular backups, but trouble with servers managing customer information and content, or with browsing/reservation systems, poses a risk directly linked to business continuity.

The Group relies on its extensive network with media outlets as a management resource, but if it loses the trust relationship with media due to the provision of incorrect information or similar issues, this could impact business performance. In addition, in recent years media outlets, particularly print media, have been on a declining trend, and if the number of recipients of corporate information decreases, there is a risk that the value of the Press Release Distribution Business itself could decline. The Group addresses this by building long-term, continuous trust relationships with each media company.

The Press Release Distribution Business is subject to regulation under related laws such as the Act on the Limitation of Liability for Damages of Specified Telecommunications Service Providers, the Act against Unjustifiable Premiums and Misleading Representations, and the Subcontract Act. If these laws are amended, or if a situation arises in which the Group violates laws and regulations due to operational deficiencies or similar issues, this could impact business performance and business development. The Group is thoroughly ensuring legal compliance through internal checks, internal training, and checks by attorneys.

Takumi Yamaguchi, Representative Director and President, has served as representative since May 2009, and since the service launch in April 2007 has played an important role in determining and executing management policy and business strategy, as well as in service development. If he becomes unable to continue his duties for any reason, this could impact the Group's business and performance. The Group is working to develop a structure to reduce excessive dependence on a specific individual through information sharing at the Board of Directors and strengthening of the management organization.

The parent company, Vector Inc., is the largest shareholder, holding 55.4% of the Company's voting rights (as of the end of the current consolidated fiscal year), and the Group is positioned as the "technology company" of the Vector Group. If the Vector Group's policies or environment change and a competing service is created from within the group, this could impact the Company's business and performance. Note that the proportion of consolidated net sales attributable to sales to the Vector Group in the current consolidated fiscal year was only 1.5%, indicating low sales dependence.