LEIFRAS Co., Ltd. Commences School Club Activity Support Operations in Fujisawa City, Kanagawa Prefecture

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 a new outsourcing agreement (the "Agreement") by Fujisawa City, Kanagawa Prefecture, and commenced the management and operation of school club activities in the city in April 2026.

Under the Agreement, Leifras has initiated comprehensive and centralized management of a total of two club activities across two public junior high schools in the city. This achievement marks the Company's first outsourcing agreement with Fujisawa City and is aligned with the Company's the continued execution of its growth strategy aimed at further expanding its market share during Japan's ongoing "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**.