Euglena Co., Ltd. and Oriental Air Bridge Co., Ltd.
-Aiming to realize bio-jet fuel flight and further promote the remote island area of Nagasaki Prefecture-

Euglena Co., Ltd.
Oriental Air Bridge Co., Ltd.

　Euglena Co., Ltd. (Headquarters: Minato-ku, Tokyo, President: Mitsuru Izumo, hereinafter "Euglena") and Oriental Air Bridge Co., Ltd. (Headquarters: Omura City, Nagasaki Prefecture, President: Akira Hino, hereinafter "ORC") We are pleased to inform you that we have agreed to implement a capital and business alliance.

■ About Euglena and ORC
　Euglena Co., Ltd. started a plan to put domestic bio-jet diesel fuel into practical use for 2020 with the cooperation of Yokohama City, Chiyoda Corporation, Itochu Enex, Isuzu Motors Ltd., and All Japan Air Transport Co., Ltd. on December 1, 2015. Is announced, and one of the goals is to realize paid flights with bio-jet fuel by 2020. Construction work on the Biojet Diesel Fuel Demonstration Plant (hereinafter referred to as "the Demonstration Plant", see Fig. 1) began on June 1, 2017, and the demonstration plant was completed on October 31, 2018, 2019. We plan to start operation of this demonstration plant from the first half.
　Based at Nagasaki Airport, ORC operates air routes connecting remote islands (Iki, Goto Fukue, Tsushima) and Kyushu (Nagasaki, Fukuoka) in Nagasaki Prefecture. In addition to starting new routes between Fukuoka and Miyazaki on October 29, 2017, we also increased flights between Fukuoka and Goto Fukue (see Fig. 3). We are code-sharing (joint operation) with All Nippon Airways on each of the routes we currently operate.

■ About this capital and business alliance
　In the capital and business alliance, Euglena has agreed to undertake a third-party allotment of shares implemented by ORC and acquire a 4.7% stake. In the future, Euglena and ORC will cooperate toward the realization of flights using bio-jet fuel, as well as the promotion of both brands, products and services, and the promotion of the remote island area of Nagasaki Prefecture where ORC will operate. I will continue to do it. ORC has received various cooperation from All Nippon Airways, including maintenance work, when starting new route operations.
　In addition, Euglena aims to acquire know-how and usage record of bio-jet fuel supply Euglena brand and products to ORC customers and ORC operating areas, and acquisition of knowledge about the aviation business. ORC company, improvement of brand image due to the realization of bio jet fuel flight, Euglena, Inc. ORC company operated flights and cooperation for the promotion of ORC company operated by Region, as well as Euglena company for food microalgae Euglena Okinawa Prefecture to put a production base of We will utilize the know-how we have cultivated in the Yaeyama area regarding the promotion of remote islands.

■ Overview of shares to be acquired
　Euglena plans to undertake a third-party allotment of shares by ORC in December 2017, acquire the company's common stock (4.7% stake), and become the third largest shareholder.

■ Future outlook
　Euglena 's consolidated financial results for the fiscal year ending September 2018 will be minor.

■ Overview of each company
< Euglena >

<ORC>

Figure 1: Completion image of this demonstration plant constructed by Euglena

Figure 2: DHC-8-201 aircraft operated by ORC
　　(Bombardier Aerospace twin-engine turboprop airliner)

Figure 3: ORC's routes (after October 29, 2017)

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-Contact for inquiries from the press-
Euglena Co., Ltd. Corporate Communication Division