Establishment of Prodrone's First Mass Production Plant within Howa Machinery - Notice Regarding Third-Party Allotment of Shares with the Company as the Subscriber -

Prodrone Co., Ltd. (Headquarters: Nagoya, Aichi Prefecture; President and CEO: Shunsuke Totani; hereinafter "Prodrone") will newly establish the "Prodrone No. 1 Mass Production Plant" on the premises of Howa Machinery, Ltd. (Headquarters: Kiyosu, Aichi Prefecture; President and CEO: Takahiro Tsukamoto; hereinafter "Howa Machinery"). Additionally, Prodrone has executed a third-party allotment of shares with Howa Machinery as the subscriber.

On September 1, 2026, Prodrone received certification from the Minister of Economy, Trade and Industry regarding its application for a stable supply security plan concerning "unmanned aerial vehicles," which are designated as specified critical materials. By utilizing Howa Machinery's existing facilities, Prodrone will rapidly and efficiently build a stable supply system to meet drone demand in areas such as inspection, logistics, and disaster prevention. Starting drone mass production in Aichi Prefecture—a major hub for Japan's automotive and aerospace industries—is expected to significantly contribute not only to improving product quality and technological innovation, but also to the development of regional industries and the strengthening of the international competitiveness of domestic drones.

Prodrone and Howa Machinery have already begun technological collaboration, including the joint development of "countermeasure drones" announced during Defense Minister Koizumi's visit to Prodrone's headquarters on May 20, 2026. Both companies will further promote their cooperation to support the foundation of the drone industry with reliable technological capabilities and contribute to solving social issues.

[Reference Releases]

- Defense Minister Koizumi Visits Prodrone for Exchange of Opinions and Internal Inspection

- Regarding Certification under the Ministry of Economy, Trade and Industry's "Supply Security Plan"

[About Howa Machinery, Ltd.] https://www.howa.co.jp/

Established in 1907. Starting from the manufacturing and sales of Toyoda-type looms and based on manufacturing technology cultivated over more than 100 years, Howa Machinery provides a wide range of products and services spanning from social infrastructure to the defense sector, ranging from firearms such as the Type 20 5.56mm rifle for the Ministry of Defense to street sweepers, soundproof sashes, and machine tools for automotive applications.

[About Prodrone Inc.]

With the vision of "becoming the most trusted drone company in the community," Prodrone aims to build a drone ecosystem in the Chubu region. Handling everything from development to production of dual-use drones in a one-stop shop—such as the large-scale "PD6B-CAT3," which aims to obtain Type 1 model certification, and the "Prodrone GT-M," capable of long-duration flight (high efficiency of over 50 km/liter)—Prodrone will establish a mass production system for domestic drones.