[Cancellation and Amendment of Disclosure]
Notice Regarding Cancellation of Subsidiary Establishment and
Change to the Absorption-Type Merger Scheme among the Company’s Subsidiaries

SHIFT Inc. (“SHIFT,” headquartered in Minato-ku, Tokyo, Japan; Masaru Tange, CEO and Representative Director) hereby announces that it resolved, at a Board of Directors meeting held today, to cancel the establishment of a subsidiary (Secure One Co., Ltd., hereinafter “Secure One”) and to change the scheme previously disclosed in the press release dated March 24, 2026, titled “Notice of Incorporation Subsidiary and Mergers between our Subsidiaries” (the “Reorganization”), as described below (the “Amendment”).

(i) SHIFT SECURITY Inc.^*1(hereinafter “SHIFT SECURITY”), a wholly owned subsidiary (consolidated subsidiary) of SHIFT, will be merged into SHIFT through an absorption-type merger.
(ii) KRAF Inc.^*2 (hereinafter “KRAF”) and MAS Lab Inc.^*3 (hereinafter “MAS Lab”), both currently held by SHIFT SECURITY, will also be merged into SHIFT through absorption-type mergers.

*1 Headquartered in Shibuya-ku, Tokyo; Shinobu Kaneuchi, Representative Director
*2 Headquartered in Miyazaki-shi, Miyazaki; Masashi Fujisaki, Representative Director
*3 Headquartered in Shibuya-ku, Tokyo; Toshihiko Takei, Representative Director

1. Purpose of the Reorganization
We have determined that consolidating the three companies engaged in cybersecurity businesses into SHIFT, which also operates cybersecurity services, represents the optimal course of action from the perspective of improving management resource efficiency.

Furthermore, the Amendment forms part of the back-office sharing (consolidation) initiative disclosed today,^* and through this Amendment, the SHIFT Group will further promote the AI transformation of its back-office functions.

* “Notice Regarding Consolidation of Back-Office Functions of 15 SHIFT Group Companies through an Absorption-Type Company Split,” dated May 26, 2026.

For further details, please see here.