NEWS & PRESS RELEASE

Announcement of a merger

December 20, 2021Press Release

Announcement of a merger

(Simplified Merger and Short-form Merger)

CHOFU SEISAKUSHO CO., LTD (hereinafter, the "Company") hereby announces that at the meeting of Board of Directors held on December 17, 2021, resolved to carry out a merger (hereinafter, the "Merger")　with subsidiary company, SUNPOT CO., LTD.. (hereinafter, "Sunpot "), effective from April 1, 2022.

1. Purpose of the Merger

The Company provides manufacturing and sales of air conditioning equipment and contributes to comfort and healthy living environment. The Company aims to improve management resources efficiencies across the entire group, streamline our organization and business operation and enhance our business value by taking full advantage of our know-how that we cultivated.

2. Outline of the Merger

(1) Schedule of the Merger

   Date of the resolution of the Board of Directors    December 17, 2021

   Date of signing of the Merger agreement          December 17, 2021

   Effective date of the Merger                    April 1, 2022

As the Merger falls under a simplified merger as prescribed in Article 796, Paragraph 2 of the

Sunpot Act in relation to Company's wholly owned Company, and a short-form merger as prescribed in Article 784, Paragraph 1 of the same act in relation to Sunpot, the Merger agreement approved without convening General Meeting of Stockholders of either companies.

(2) Method of the Merger

The Company as the surviving firm will continue to operate having the entire Rights and Obligations of Sunpot, while the Sunpot will be dissolved.

3. Status after the Merger

  The Company will continue to provide the manufacturing and sales of air conditioning equipment, the product warranty, repair service for Sunpot.