Regarding the Recommendation of Surcharge Payment Order Against Our Former Employee

EPS Holdings, Inc.

It was announced today that the Securities and Exchange Surveillance Commission recommended issuing a surcharge payment order against our former employee for violating the Financial Instruments and Exchange Act (insider trading) through private stock transactions conducted while employed by EPS Holdings, Inc.

In response to a request for investigation cooperation from the authorities, we have been cooperating in good faith. We also took appropriate disciplinary actions based on our company regulations.

EPS Holdings, Inc. has long established insider trading prevention regulations to prohibit the purchases and sales of specified securities, etc. related to the Company, its affiliated subsidiaries, etc. by employees, etc. before an external disclosure of internal information, and has been providing company-wide education through in-house training to prevent insider trading.
We take this matter seriously, and we have completed a review of our internal control systems and have revised our internal insider trading prevention regulations (including measures such as prohibiting stock transactions involving business partners).
We will continue to work to prevent recurrence by revising our preemptive prevention system and by re-training and re-educating our employees.

EPS Holdings, Inc. sincerely apologizes for losing the trust of everyone involved.