[November 02, 2026]

SBC Medical Forms Capital and Business Alliance with AtomicSoftware, Provider of the medicalforce Clinic Management Platform Used by 800+ Clinics in Japan

SBC Medical Group Holdings Incorporated (Nasdaq: SBC) ("The Company" or "SBC Medical"), a Medical Services Organization (MSO) providing management support across a wide range of healthcare fields, today announced that it entered into a capital and business alliance agreement on October 26, 2026, with AtomicSoftware Inc. ("AtomicSoftware"), the Tokyo-based provider of medicalforce, an all-in-one software-as-a-service (SaaS) platform for clinics. In connection with the alliance, SBC Medical has invested ¥600 million (approximately US$3.8 million) in AtomicSoftware's Series C funding round. The two companies will co-develop AI features, beginning with a feature that supports physicians in preparing medical records.

Key Highlights

• Proven platform: medicalforce is used by more than 800 clinics*1 in Japan, primarily self-pay clinics, with a clinic retention rate of 99.2%*2.
• Joint AI development: Features co-developed by the two companies will enhance medicalforce and be progressively incorporated into SBC Medical's own clinic operations systems.
• Per-clinic economics: By freeing physician and staff time from documentation and administrative work, SBC Medical aims to raise productivity and profitability at each clinic.
• Scalable growth: Standardized implementation procedures are expected to shorten clinic opening preparations and support faster operational stability as SBC Medical expands its network of 287 clinics*3.
• Strategic investment: SBC Medical has invested ¥600 million (approximately US$3.8 million) in AtomicSoftware's Series C funding round.

Strategic Rationale

SBC Medical's growth as an MSO has been built on standardizing the systems required for clinic operations and deploying them across the Group. Standardization and digitalization are central to the Company's business model, enabling it to expand its network while maintaining consistent operational quality. The Company regards investment in the systems and processes behind this model as an important growth investment, including as a means of continuing to raise its repeat rate of 72%*4.

At self-pay clinics, reservations, electronic medical records, payments, and post-visit follow-up run as one continuous daily workflow. For AI to deliver tangible results, it must be embedded in that workflow as features physicians and staff use every day. By combining SBC Medical's on-the-ground operational experience with AtomicSoftware's expertise in building the specific requirements of self-pay clinics into its products, the companies aim to reduce the burden of documentation and verification and allow more time to be devoted to customers.

The alliance builds on an existing operating relationship. Hada no Aozora Clinic, a clinic to which SBC Medical provides management support, already uses medicalforce as its core operating and payment system, and the knowledge and track record gained through this real-world use led to the alliance. Through this alliance, the two companies will move beyond a provider-user relationship to become partners that jointly explore and realize better approaches to clinic operations.

Why AtomicSoftware

In just over five years since its launch, medicalforce has been adopted by more than 800 self-pay clinics*1 in Japan, including aesthetic surgery and aesthetic dermatology clinics, and supports reservation management, electronic medical records, payments, customer information management, and business analytics in a single system, with a clinic retention rate of 99.2%*2. Its product strength lies in addressing operational needs specific to self-pay clinics, such as reservations that link rooms, equipment, and staff with treatment menus, and the management of prepaid treatment courses and case photographs. Through its AI feature suite, medicalforce intelligence, AtomicSoftware is also developing capabilities for drafting medical records from voice, summarizing medical record information, and supporting post-visit follow-up. Its ISO/IEC 27001:2022 certification, the international standard for information security management, provides a foundation of trust for handling customer information. SBC Medical believes that drawing on this development and operational expertise, rooted in clinical settings in Japan, will accelerate the practical application of the joint development results and the evolution of its in-house systems.

Scope of the Collaboration

The two companies will co-develop AI-powered features, beginning with a fature that supports physicians in preparing medical records. Features will be validated and refined at clinics to which SBC Medical provides management support to ensure they are practical in clinical settings, then used to enhance medicalforce and progressively incorporated into the Company's clinic operations systems. By reducing the time physicians and staff spend on documentation and administrative work, the Company aims to increase the time available for each customer, enable more customers to be served with limited staff, and improve productivity and profitability per clinic.

Building on the operational track record at Hada no Aozora Clinic, the companies will also consider how medicalforce can be applied to new clinic brands and business formats according to their operational characteristics. By jointly establishing implementation procedures, they aim to shorten clinic opening preparations and achieve early operational stability, strengthening the operational foundation that supports network expansion.

Comments

Yoshiyuki Aikawa, CEO, SBC Medical Group Holdings Incorporated
"Clinic profitability depends on how much of our physicians' and staff members' time can be directed toward customers. AI is an effective way to create that time, but its value is realized only when it is embedded in the systems used every day in clinical settings. AtomicSoftware has gained a deep understanding of our operations through the adoption of medicalforce at Hada no Aozora Clinic. We chose a capital and business alliance because, rather than buying AI off the shelf, we want to co-create it and build it into our own operating capabilities. We believe the resulting productivity gains will raise profitability at our existing clinics, help new clinics get on track quickly, and create a long-term competitive advantage. We are fully committed to enhancing corporate value."

Shoichi Hatanaka, Representative Director and CEO, AtomicSoftware Inc.
"As AI moves into practical use, the standards required of clinic software are rising every year. Both of our representative directors are engineers by background, and since our founding, our strength has been building the specific operations of clinics offering self-pay and insurance-covered care into our products, continuously improving medicalforce together with clinical teams. Through this alliance, we will expand our development organization and, drawing on expertise accumulated at the forefront of aesthetic healthcare, enhance the value of medicalforce, accelerate its development, and deliver its value to more customers."

Overview of the Capital and Business Alliance

Partner: AtomicSoftware Inc.
Agreement date: October 26, 2026
Scope of the alliance: Collaboration in the area of clinic operations systems; joint development of AI features and implementation of the results in the Company's own systems; consideration of system deployment for new clinic brands and business formats
Capital alliance: SBC Medical's investment of ¥600 million (approximately US$3.8 million) in AtomicSoftware's Series C funding round

About AtomicSoftware Inc.

Company name: AtomicSoftware Inc.
Founded: November 2020
Location: Sumitomo Fudosan Nishi-Gotanda Building 4F, 3-6-21 Nishi-Gotanda, Shinagawa-ku, Tokyo, Japan
Representatives: Shoichi Hatanaka, Representative Director and CEO; Ryusuke Kumita, Representative Director and CTO
Business: Development and provision of medicalforce, an all-in-one SaaS for clinics, and Keibi Force, an integrated management system for security companies
Website: https://atomic-software.co.jp/

*1 Number of clinics using medicalforce, as of September 2026 (as announced by AtomicSoftware)
*2 Clinic retention rate of medicalforce, as of March 2026 (based on AtomicSoftware's data)
*3 Number of clinics in SBC Medical's network in Japan and overseas, as of the end of July 2026
*4 Percentage of customers who visited SBC brand, Rize Clinic, or Gorilla Clinic franchise locations two or more times in the fiscal year ended December 31, 2025 (excluding free consultations)
Note: The initiatives under this alliance are based on current plans and are subject to change.
Note: U.S. dollar amounts are based on the exchange rate as of October 30, 2026.

About SBC Medical Group Holdings Incorporated

SBC Medical is a Medical Services Organization providing management support across a wide range of healthcare fields, including advanced aesthetic healthcare, dermatology, orthopedics, fertility treatment, gynecology, dentistry, hair loss treatment (AGA), and ophthalmology. The Company manages a diverse portfolio of clinic brands and is actively expanding its global presence, particularly in the United States and Asia, through both direct operations and medical tourism initiatives. In September 2024, the Company was listed on Nasdaq, and in June 2025, it was selected for inclusion in the Russell 3000® Index, a broad benchmark of the U.S. equity market. Guided by its Group Purpose "Contributing to the well-being of people around the world through medical innovation," SBC Medical Group Holdings Incorporated continues to provide safe, trusted, and high-quality medical services while further strengthening its international reputation for quality and trust in medical care.

For more information, visit https://sbc-holdings.com
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Forward-Looking Statements

This press release contains forward-looking statements. Forward-looking statements are not historical facts or statements of current conditions, but instead represent only the Company's beliefs regarding future events and performance, many of which, by their nature, are inherently uncertain and outside of the Company's control. These forward-looking statements reflect the Company's current views with respect to, among other things, the Company's plans and strategies for service expansion; growth in revenue and earnings; and business prospects. In some cases, forward-looking statements can be identified by the use of words such as "may," "should," "expects," "anticipates," "contemplates," "estimates," "believes," "plans," "projected," "predicts," "potential," "targets" or "hopes" or the negative of these or similar terms. The Company cautions readers not to place undue reliance upon any forward-looking statements, which are current only as of the date of this release and are subject to various risks, uncertainties, assumptions, or changes in circumstances that are difficult to predict or quantify. The forward-looking statements are based on management's current expectations and are not guarantees of future performance. The Company does not undertake or accept any obligation to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions, or circumstances on which any such statement is based, except as required by law. Factors that may cause actual results to differ materially from current expectations may emerge from time to time, and it is not possible for the Company to predict all of them; such factors include, among other things, changes in global, regional, or local economic, business, competitive, market and regulatory conditions, and those listed under the heading "Risk Factors" and elsewhere in the Company's filings with the U.S. Securities and Exchange Commission (the "SEC"), which are accessible on the SEC's website at www.sec.gov.

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