ZEROSPO ^{Filed Terms, Nasdaq: ZRSP}

We believe we are one of the leading medical relaxation service providers in Japan because, while the medical and relaxation business is a fragmented market in Japan, there are five key companies in this industry, which are Medirom, Genki-Dou, HoneGori, K’s Group and our Company. These five entities, including our Company, operate their salons across Japan, with sales revenue typically ranging from US$10 million to $50 million. Our principal business is to own, develop, operate, manage, and support medical and relaxation salons through direct ownership of such salons throughout Japan. We seek to be the leading provider of medical relaxation services in the markets we serve and to become the most recognized brand in our industry through the steady and focused expansion of medical and relaxation salons in key markets throughout Japan and potentially abroad. We operate two synergistic lines of businesses: (i) a medical salon and (ii) a relaxation salon. Each service is staffed by qualified judo therapists and acupuncturists. The main feature differentiating our medical and relaxation salons from others is that most of our employees are certified judo therapists and acupuncture and moxibustion therapists, both of which require three years of schooling to qualify, and only those who have passed the national exam, which has a 60% pass rate, are eligible for employment.