LEIFRAS Co., Ltd. Awarded Comprehensive Weekend School Club Activity Outsourcing Contract Covering All Junior High Schools in Itoshima City

LEIFRAS Co., Ltd. (Nasdaq: LFS ) (the "Company" or "Leifras"), a sports and social business company dedicated to youth sports and community engagement and Japan's leading operator of children's sports schools and school club activity support businesses, today announced that it was awarded the Itoshima City Junior High School Club Activities Regional Expansion and Other Operational Services Outsourcing Contract (the "Contract") by Itoshima City. Pursuant to the Contract, Leifras has initiated comprehensive weekend club activity instruction, operational management, and strategic support for the transition of school club activities to local communities across all six public junior high schools within the city. This collaboration represents an initiative by the Company to establish sustainable operational frameworks for local governments during Japan's ongoing national "Reform Execution Period" for school club activities. Reducing excessive teacher workloads and improving the quality of specialized instruction have become urgent social challenges in schools throughout Japan. In response, the nation has officially entered the "Reform Execution Period" starting in fiscal year 2026 under the New Guidelines Regarding Reform of School Club Activities issued by Japan's Ministry of Education, Culture, Sports, Science and Technology (the "Guidelines"), according to which weekend club activities are expected to, in principle, be fully transitioned to local communities and private operators. With approximately 9,800 junior high schools* and 128,000 club activities nationwide, the Company estimates the potential market size to be approximately JPY500 billion**. The Guidelines plan to transition 30.4% (38,954 clubs) of weekend club activities to regional and private sectors within fiscal year 2026 alone. *e-Stat Government Statistic Portal Site/Number of Schools in 2025. **Market size is estimated by the Company based on past contract performances. Overview and Key Strategic Features of the Itoshima City Project Under this project, Leifras provides comprehensive weekend school club activity management services and step-by-step regional transition support to six public junior high schools in Itoshima City (Maebaru, Maebaru-Higashi, Maebaru-Nishi, Nijo, Fukuyoshi, and Shima Junior High Schools) through the following core initiatives: Centralized Management from Regional Club Establishment to Operations: Moving beyond instructor dispatch, Leifras serves as a turnkey partner supporting the establishment and operation of the new "Certified Regional Cultural and Sports Clubs," including funding administration. The Company also manages the entire instructor lifecycle from sourcing and registration to matching and strategic placement, building a sustainable framework for the transition of school club activities to local communities in Itoshima City. Dedicated Administrative Support via a Program Director: To relieve teachers from weekend club responsibilities, Leifras assigns a dedicated Program Director to coordinate directly with the municipality and schools. The Program Director oversees on-site safety, responds to emergencies, and handles parent communications, including attendance tracking and inquiries, via a specialized system. Comprehensive 12-Hour Training Program with a Safety-First Approach: Leifras requires all instructors to complete 12 hours of training, consisting of a six-hour Foundational Training Course and a six-hour Specialized Training Course to develop essential coaching skills. Utilizing proprietary safety protocols, including specialized emergency measures for heatstroke, lightning strikes, and severe storms, the Company has maintained a track record of zero major acci...