Notice regarding capital alliance with JAFCO Group Co., Ltd.

Izawa Towel Co., Ltd. (Headquarters: Shibuya-ku, Tokyo, Representative Director: Masashi Izawa. Hereinafter referred to as "Izawa Towel") and JAFCO Group Co., Ltd. (Headquarters: Minato-ku, Tokyo, Representative Director: Shinichi Toyoki). The funds managed by the JAFCO Group (JAFCO SV6 Investment Limited Partnership and JAFCO SV6-S Investment Limited Partnership; hereinafter collectively referred to as "JAFCO") have agreed to take a capital stake in Izawa Towel. We would like to inform you that we have reached this point.

Through this capital alliance, Izawa Towel's decarbonization and recycling technologies, the industry's leading textile product technology development capabilities, revolutionary production efficiency DX (digital transformation), and the already underway efforts in the United States and Europe will be leveraged. JAFCO will support the startup's global expansion based on the management support know-how it has cultivated over the years, its extensive network, and the startup's knowledge of cutting-edge technologies and services. Through this, we will realize Izawa Towel's vision of "providing new value to society as a revolutionary" at a higher level.

With the strong support of JAFCO, Japan's largest venture capital firm, Izawa Towel aims to achieve sustainable growth by leveraging JAFCO's extensive management support know-how and network, as well as its extensive knowledge of cutting-edge technology and services. We are aiming for an IPO.

Below, we will introduce the business details of Izawa Towel.

●A leading company in the towel industry that creates new markets without being bound by industry customs and common sense.
We specialize in towel products and provide OEM/ODM services.
As an "innovator" and "disruptor," we are constantly creating new markets by creating future towel markets and consumer purchasing behavior.
● Industry-leading research and development capabilities
We have laboratories at each of our locations, and we conduct experiments using our own testing standards in order to achieve the optimal usability of towels while taking into account the usage scenarios of end users. In addition, for the future 100 years from now, we are focusing on research and development every day to fulfill our social responsibility while leading the industry in decarbonization, recycling technology, etc.
●Establishment of an optimal SCM system through revolutionary DX
We manage multiple partner factories based on our own production efficiency SCM system = IOPMS. We use DX to promote a production method that is different from traditional towel manufacturing. This enables us to achieve quality, low cost, and delivery management that overturns industry common sense, and to perform the most excellent manufacturing management.
In addition, through our business alliance with WestPoint Group in the United States, we aim to lower production and distribution costs and further strengthen our product development capabilities by leveraging the know-how of each company as a result of the unification of Japanese and American towel standards.

■About JAFCO Group Co., Ltd.
Company name: JAFCO Group Co., Ltd.
Address: 24th floor, Toranomon Hills Mori Tower, 1-23-1 Toranomon, Minato-ku, Tokyo
Business: Japan's largest venture capital firm. Venture investment, buyout investment, etc.