Proto : Notice Regarding Changes in Specific Subsidiaries

(TRANSLATION FOR REFERENCE ONLY) April 14, 2021

To Our Shareholders:

Corporate Name: PROTO CORPORATION

Representative: Kenji Kamiya, President

Securities Code: 4298 (TSE and NSE 1st Section)

Contact: Takehito Suzuki, Executive Officer

Tel: [phone]

Notice Regarding Changes in Specific Subsidiaries

PROTO CORPORATION ("the Company") hereby announces that it has resolved to establish PROTO Ventures 2 Investment Limited Partnership in April 2021.Once capital is invested into the fund, the fund will become a

specified subsidiary of the Company.

1. Reason for change

At its Board of Directors' meeting held today, the Company resolved to make investments its capital in PROTO Ventures 2 Investment Limited Partnership by 1.99 billion yen for the purpose of investment in startup companies within Japan and overseas. As a result, the fund will become a specified subsidiary of the Company, as the Company's capital investment in the fund is equivalent to more than 10% of the Company's capital.

2. Overview of the specified subsidiary to be transferred

(1)	Name	PROTO Ventures 2 Investment Limited Partnership
(2)	Address	18-1,Nishi-Shinjuku6-chome,Shinjuku-ku, Tokyo 160-0023, Japan
(3)	Basis for Establishment,	Establishment of Investment Business Limited Liability Partnership under
etc.	the Act on Investment Business Limited Liability Partnership Agreement
(4)	Purpose of composition	Investment in startup companies within Japan and overseas
(5)	Composition date	April 2021 (Tentative)
(6)	Total amount of investment	2 billion yen
(7)	Investors・Investment ratio・	PROTO Ventures 0.5%
Overview of investors	PROTO CORPORATION 99.5%
		Name		PROTO Ventures
		Address		18-1,Nishi-Shinjuku6-chome,Shinjuku-ku, Tokyo
			160-0023, Japan
	Outline of managing
(8)	Representative	Toru Shiraki, Representative Director
partner	Title and Name
		Business		Investment
		description
		Capital		430,000,000 yen
		Capital	We have a 99.5% stake.
		relationship
	Relationship between the	Personnel	Our wholly owned subsidiary, PROTO Ventures has
	relationship	become a managing partner of the fund.
(9)	listed company and the
	There is no business relationship between us and the
	fund	Business
	fund concerned. Our wholly owned subsidiary,
		relationship
		PROTO Ventures has become a managing partner of
			the fund.
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3. Schedule
Institutional decision date	April 14, 2021
Contract date	April 2021(Tentative)

4. Future Outlook

The impact of this matter on the Company's financial results for the current consolidated financial year is expected to be negligible, however, if any matter arises that should be announced in the future, it will be disclosed as soon as possible.

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