Tokyo Lifestyle's Tokyo Lifestyle Limited Enters Into An Investment And Operational Target Agreement With A Hong Kong-Based Private Investor

Tokyo Lifestyle Co., Ltd. ("Tokyo Lifestyle" or the "Company") (NASDAQ:TKLF), a retailer and wholesaler of Japanese beauty and health products, sundry products, luxury products, electronic products, collectible cards, trendy toys as well as other products in Hong Kong, Japan, North America, Thailand, Vietnam and the United Kingdom, today announced that its Hong Kong subsidiary, Tokyo Lifestyle Limited ("TKLF HK"), entered into an investment and operational target agreement on November 18, 2025 (the "Agreement") with a Hong Kong-based private investor (the "Investor") to expand and develop the Company's directly-operated store network in Hong Kong and Australia.

The collaboration is expected to strengthen Tokyo Lifestyle's strategic presence in Hong Kong and Australia, accelerate the rollout of new directly operated stores, and enhance the Company's regional operational capabilities.

Pursuant to the Agreement, the Investor will commit HKD 10 million (approximately US$1.28 million, the "Initial Investment") by December 31, 2025, to fund the expansion and operations of TKLF HK's physical retail stores in Hong Kong and Australia. The investment will be primarily allocated to store leasing, fit-out, inventory procurement, staffing, marketing and other related operating expenses. The Investor will oversee strategic planning, site selection, store build-out, team recruitment, fund supervision and periodic board reporting.

As consideration for the Initial Investment, TKLF HK agrees to appoint the Investor as a director of TKLF HK for a two-year term commencing on the Agreement's effective date. In addition, the Investor has agreed to consider providing additional funding should the Company require further investment following the completion of the Initial Investment, with the amount and timing to be determined through mutual negotiation.