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Investment Bridge Announces Investment Opinion: Bridge Report on NOVARESE Issued: 1st Half FY12/13 Earnings in Line with

  Investment Bridge Announces Investment Opinion: Bridge Report on NOVARESE
  Issued: 1st Half FY12/13 Earnings in Line with Estimates, Full Year FY12/13
  Estimates Revised Upwards

NOTE TO EDITORS: The following is an investment opinion issued by Investment
Bridge

Business Wire

TOKYO -- September 3, 2013

Investment Bridge, one of Japan’s leading IR services companies, has released
a “Bridge Report” on NOVARESE, Inc. (TOKYO:2128) reviewing its earnings
performance in the first half and its estimates for full fiscal year December
2013.

Report Highlights

  *During the current first half, sales rose by 13.4%, while operating and
    current profits declined by 39.8% and 43.0% year-over-year. These figures
    were basically in line with the Company’s estimates.
  *Based on anticipation of seasonal increases in sales during the second
    half and the strong order environment, full year sales and operating and
    current profit estimates have been revised upwards. NOVARESE’s revised
    estimates now call for sales and current profit to rise by 14.8% and 17.2%
    year-over-year during FY12/13.
  *The Bridge Report calls attention to NOVARESE’s successful efforts to
    fortify its advertising and the higher sales resulting from relatively
    strong wedding orders trends, in addition to highlighting the opening of
    new wedding facilities and their contribution to increased brand
    recognition and earnings in the future.

NOVARESE is one of Japan’s leading wedding production and related services
providers and it pursues a corporate philosophy of providing entertaining and
unique experiences to its customers in its main businesses of wedding ceremony
production, wedding clothing, and restaurants operations. NOVARESE targets
Japanese in the latter half of their 20s to 30s and provides them with simply
designed and modern weddings that are highly unique, which in turn allows
NOVARESE to achieve high levels of profitability.

During the current first half, sales rose by 13.4% year-over-year to JPY5.8
billion on the back of the strong 10.2% year-over-year increase in wedding
order backlog at the term start. Reviews of NOVARESE’s advertising strategy
and initial costs arising from the opening of new facilities including
“KYUSAKURANOMIYA KOKAIDO” in April, and the impending opening of the
“TSUJIKETEIEN” in December caused operating profit to decline by 39.8%
year-over-year to JPY140 million.

In light of the recovery in wedding orders at existing facilities and the
contribution from newly opened facilities, the assumption for the number of
weddings to be performed has been raised from initial estimates of 2,870 to
2,910 for a 10.2% year-over-year increase. Along with anticipation of a strong
increase in weddings, sales and operating and current profit estimates have
also been revised upwards (Net profits have been revised downwards because of
impairment losses booked during the first half.) and are now expected to grow
by 14.8%, 17.8% and 17.2% year-over-year to JPY13.5, JPY1.4 and JPY1.4 billion
respectively.

In addition to these positive developments, the Bridge Report also calls
attention to NOVARESE’s success in fortifying its advertising strategy and
strong wedding orders trends. The Report also highlights the potential
contribution from recently opened facilities including the “JAMES-TEI” and
“KYUSAKURANOMIYA KOKAIDO,” and the impending opening of “TSUJIKETEIEN” wedding
facilities to increasing both the brand recognition and future earnings of
NOVARESE.

To view the full report, please go to the website at the URL listed below.
http://www.bridge-salon.jp/report_bridge/archives/eng/2128/20130902.html

About Bridge Report:
Bridge Report is produced by Investment Bridge Co., Ltd. and provides accurate
and objective information about the earnings, business strategies, and other
information of publicly traded Japanese companies.

Contact:

Investment Bridge Co., Ltd.
Kaoru Hosaka for NOVARESE, Inc.
+81-3-5842-5765 (Japanese correspondence only)
novarese@cyber-ir.co.jp (English and Japanese correspondence)