SEGA SAMMY : Forms Strategic Business Alliance with Foster + Partners, Ltd.~ Partnering to Enter the IR Business in Japan ~

NEWS RELEASE

January 27, 2020

SEGA SAMMY HOLDINGS, INC.

Foster + Partners

SEGA SAMMY's Integrated Resort Initiative (3)

SEGA SAMMY Forms Strategic Business Alliance

with Foster + Partners, Ltd.

~ Partnering to Enter the IR Business in Japan ~

It is hereby notified that SEGA SAMMY HOLDINGS, INC. (headquarters: Shinagawa-ku,

Tokyo; President and Group COO (Representative Director): Haruki Satomi; "SEGA SAMMY") has concluded a strategic business alliance with Foster + Partners, Ltd. (headquarters: London, U.K.; Senior Executive Partner: Luke Fox; "Foster + Partners") led by Norman Foster, one of the world's greatest architects. Through this alliance, the two sides will jointly pursue initiatives in the integrated resort (IR) business.

The purpose of this strategic business alliance is to create new value in IR by sharing the strengths of SEGA SAMMY and Foster + Partners. SEGA SAMMY will contribute its abundant knowledge and knowhow in the entertainment industry, while Foster + Partners will bring its extensive experience in having carried out innovative feats in the architectural world.

Foster + Partners is an architectural firm founded by Norman Foster, a British architect who continues to push the envelope in the architectural industry, that has created many world- renowned buildings, including the Hongkong and Shanghai Banking Cooperation (HSBC) Main Building and the Great Court of the British Museum. While Foster + Partners utilizes cutting-edge technology, it also adopts unique approaches and methods that give consideration to historical context and environment, and has been highly evaluated around the world. Foster + Partners also served as the architect for Apple Park, which sparked media attention around the world.

Aiming to further the group's growth, SEGA SAMMY has identified the development and enhancement of its resort business as a critical theme in its business strategy. By operating Phoenix Seagaia Resort, which houses the Sheraton Grande Ocean Resort and the Phoenix Country Club in Miyazaki, as well as Paradise City, South Korea's first IR, in Incheon, South Korea, SEGA SAMMY is working to acquire various knowhow concerning the development and operations of resort facilities.

In Japan, the Integrated Resort Development Act* has been established, and an environment

where IRs can be implemented is in the works. In order to make Japan's IR facilities stand out in an international context where competition in the IR business is on the rise, there is a need to create IR facilities that have an overwhelming presence on the world stage. Through its partnership with Foster + Partners, SEGA SAMMY will vigorously accelerate its initiatives to enter the IR business in Japan.

With an eye to Japan's future, SEGA SAMMY and Foster + Partners will aim to create new value in IR, while taking on the responsibility and resolve to develop and operate facilities that will contribute to societal development, such as revitalizing the Japanese economy and enhancing international competition in the tourism industry.

*Official name: Act on Promotion of Development of Specified Complex Tourist Facilities Areas

• Comments from Luke Fox, Senior Executive Partner, Head of Studio of Foster + Partners
  We are delighted to be working with SEGA SAMMY on this amazing project on the Yokohama Waterfront. Our aim is to provide a new approach to urban regeneration and create a new global destination in Yokohama. We look forward to working with the city authorities and SEGA SAMMY on this exciting project in the coming months
• Comments from Haruki Satomi, President and Group COO (Representative

Director) of SEGA SAMMY

We are very excited that we were able to realize a partnership with Foster + Partners on this occasion. SEGA SAMMY's desire is to send out Japan's amazing qualities to the world such as our history, culture, and hospitable hearts. If an IR could be established in Japan, this could be a major site for such exchange. Simultaneous to this, if an IR is to be a landmark that represents Japan's innovative spirit, we believe that it must have an abundantly creative design that matches the city's landscape, cutting-edge technology, and environmental considerations. Our partnership with Foster + Partners dramatically increases the possibility that we will achieve our lofty goals. We will endeavor to realize IR so that we can provide moving experiences, which is SEGA SAMMY's mission.

• Overview of Foster + Partners, Ltd.

Foster + Partners is a global studio for architecture, urbanism and design, rooted in sustainability, which was founded nearly fifty years ago in 1967 by Lord Foster. Since then, he and the team around him have established an international practice with a worldwide reputation for thoughtful and pioneering design, working as a single studio that is both ethnically and culturally diverse. The studio integrates the skills of architecture with engineering, both structural and environmental, urbanism, interior and industrial design,

model and film making, aeronautics and many more - our collegiate working environment is similar to a compact university. These diverse skills make us capable of tackling a wide range of projects, particularly those of considerable complexity and scale. Design is at the core of everything that we do. We design buildings, spaces and cities; we listen, we question and we innovate.

〇 Company name	: Foster + Partners, Ltd.
〇 Location	: London, United Kingdom
〇 Representative	: Luke Fox (Senior Executive Partner, Head of Studio)
〇 Founded	: 1967
〇 Website	: www.fosterandpartners.com

• Overview of SEGA SAMMY HOLDINGS, Inc.

SEGA SAMMY Group is a comprehensive entertainment company comprised of more than 50 companies around the world, including world-leading game maker Sega. We handle a wide range of businesses in the entertainment industry including games, pachislot and pachinko machines, amusement machines, development and sales of toys, animation production, and the development and operations of resort facilities, and we are constantly creating new and highly original products and services. Through these products and services, we provide moving experiences to people worldwide.

〇 Company name	: SEGA SAMMY HOLDINGS, INC.
〇 Location	: Shinagawa-ku, Tokyo
〇 Representative	: Haruki Satomi, President and Group COO (Representative Director)
〇 Founded	: October 2004
〇 Website	: https://www.segasammy.co.jp/english/