ItoKuro Inc.

Sales in the education market account for the majority of the Company's sales, and a significant contraction or fluctuation in this market would directly impact the business and results of operations. As a countermeasure, the Company is pursuing portfolio diversification through expansion into multiple business areas, together with thorough cost control. This is designated as a "particularly important risk" in the Annual Securities Report.

Numerous companies, including major corporations, operate in the Internet media business area, and if competition intensifies due to new entrants or if the Company fails to sufficiently differentiate itself, this may affect its business and results of operations. The Company strives to maintain differentiation and competitive advantage by leveraging its first-mover advantage and know-how to create new services. This is designated as a "particularly important risk" in the Annual Securities Report.

If personal information is leaked externally due to computer viruses, unauthorized access, system defects, errors by officers or employees, natural disasters, or other causes, this may lead to legal disputes and loss of credibility, affecting the business and results of operations. The Company addresses this through the establishment of personal information protection regulations and information management regulations, thorough internal training for all employees, and continued maintenance of the Privacy Mark obtained in 2007. This is designated as a "particularly important risk" in the Annual Securities Report.

If unforeseen events occur, such as natural disasters, accidents, software malfunctions, unauthorized access via networks, or computer virus infections, this may result in service suspension or data loss, affecting the business and results of operations. The Company has implemented measures such as continuous strengthening of failure monitoring systems, system redundancy, and company-wide sharing and periodic review of response flows in the event of failures. This is designated as a "particularly important risk" in the Annual Securities Report.

If natural disasters such as earthquakes, typhoons, or tsunamis, fires, power outages, international conflicts, or the spread of infectious diseases occur, this may result in temporary suspension of service provision or make business continuity itself difficult or impossible. The Company strives to ensure business continuity through response based on its risk management regulations and the establishment of an emergency response system with the Representative Director serving as the general risk management officer. This is designated as a "particularly important risk" in the Annual Securities Report.

If users' purchasing processes for goods and services change significantly due to technological advances or the emergence of alternative services, this may affect the business and results of operations of the Company's information-provision-type media business. The Company works to swiftly respond to diversifying and changing user needs and to capture new revenue opportunities by leveraging the value of its own services. This is designated as an "important risk" in the Annual Securities Report.

If the Company is unable to secure engineers as planned to respond to rapid technological changes in the internet industry, or if it becomes difficult to grasp user needs and provide sufficient functional enhancements, the value of its media may decline, affecting the business and results of operations. The Company strives to expand its services through the active accumulation and analysis of the latest information and by closely monitoring trends in human resource acquisition and the employment environment. This is designated as an "important risk" in the Annual Securities Report.

If the development of new businesses requires more man-hours than anticipated, if it fails to lead to the acquisition of users or clients, or if expected synergies from business alliances or similar arrangements are not realized, this may affect results of operations. The Board of Directors and the Management Committee comprehensively examine risks such as business forecasts and the feasibility of investment recovery, and carefully decide whether to proceed with new businesses, including M&A. This is designated as an "important risk" in the Annual Securities Report.

If amendments are made to laws such as the Act on the Protection of Personal Information, the Unauthorized Computer Access Law, the Act on the Provision of Specified Telecommunications Services, and the Act on Specified Commercial Transactions, or if the Company becomes newly subject to regulation, this may affect its business and results of operations. Under the guidance of outside experts, a dedicated department collects and examines information on legal regulations, and the Company strives to develop and strengthen its compliance framework through training and guidance as necessary. This is designated as an "important risk" in the Annual Securities Report.

If stock acquisition rights granted to directors, employees, and others are exercised, the value of shares held may be diluted. As of the end of the month preceding the filing date of this document, the number of potential shares was 2,348,500, equivalent to 10.4% of the total number of issued shares of 22,680,000. The Company may consider further use of the stock option system in the future, but its policy is to align interests with shareholders by contributing to the enhancement of corporate value. This is designated as an "important risk" in the Annual Securities Report.