FRONTEO Healthcare to Start Development Work for “Cancer Precision Medicine AI System”

TOKYO, Oct. 17, 2016 -- FRONTEO Healthcare, Inc. (“FRONTEO Healthcare”) a wholly owned subsidiary of FRONTEO, Inc. ("FRONTEO" or "the Company") (NASDAQ:FTEO) (TSE:2158) announced that it has started the development work for an artificial intelligence (AI) system for personalized cancer treatment, namely “Cancer Precision Medicine AI System” (or “CPM-AI”).

FRONTEO Healthcare will form a research and development project team for development work of the CPM-AI. Co-founders and advisory board members of the project include Professor Yusuke Nakamura of the Departments of Medicine and Surgery, University of Chicago, who is also deputy director of the Center for Personalized Therapeutics; Professor (Project) Yataro Daigo of the Institute of Medical Science, the University of Tokyo; and Dr. Hitoshi Zenbutsu of the National Cancer Center Research Institute.

Today’s healthcare system in Japan is at a major crossroads. In order to optimize healthcare cost while maintaining fair access to healthcare services and securing patients’ interests, it is necessary to establish personalized care by introducing genetic diagnosis and genome-based diagnosis.

Meanwhile, in day-to-day work at hospitals and other medical institutions, the capacity of healthcare professionals has been overstretched due to the need to provide explanations concerning diseases, treatment methods and drugs. As such, it is essential to create new systems and facilities to provide doctors, patients and their families with relevant information from the masses of data which are constantly updated.

With this project, FRONTEO Healthcare aims to resolve the above challenges in order to conduct personalized cancer treatment, by introducing the CPM-AI.

This AI system will consist of the following 3 main units:

(i) Information Support Unit
A team of experts identifies accurate and reliable information concerning necessary cancer treatments and drugs then aggregates such information within the unit, from which doctors can access the most up-to-date data. Such data can also be provided to patients and their families in plain language.

(ii) Consent Support Unit
The unit provides support for the doctors to explain related treatment and drugs using AI. The KIBIT AI engine helps explain to the patients and their families on an on-going basis to ensure sufficient understanding hence obtains consent from them.

(iii) Diagnosis Support Unit
The unit helps to recommend the most suitable treatment methods and drugs that are available to the doctors based on the examination results.

FRONTEO Healthcare has been striving to resolve challenges faced by healthcare professionals in their day-to-day work through the use of AI in various fields, such as the mitigation of in-hospital patients’ risk of falling, diagnosis of mental disorders, and mental healthcare. Going forward, FRONTEO Healthcare, with full support from the advisory board members and related medical institutions, will contribute to maintaining and enhancing the quality of healthcare services in Japan.

About FRONTEO, Inc.
FRONTEO, Inc. (“FRONTEO”) (Nasdaq:FTEO) (TSE:2158) supports the analysis of big data based on behavior informatics by utilizing its technology, "KIBIT". FRONTEO's KIBIT technology is driven by FRONTEO AI based on knowledge acquired through its litigation support services. KIBIT incorporates experts' tacit knowledge, including their experiences and intuitions, and utilizes that knowledge for big data analysis. FRONTEO continues to expand its business operations by applying KIBIT to new fields such as healthcare and marketing. FRONTEO was founded in 2003 as a provider of e-discovery and international litigation support services. These services include the preservation, investigation and analysis of evidence materials contained in electronic data, and computer forensic investigation. FRONTEO provides e-discovery and litigation support by making full use of its data analysis platform, "Lit i View^®", and its Predictive Coding technology adapted to Asian languages. The company name was changed from UBIC, Inc. to FRONTEO, Inc. as of July 1, 2016.

For more information about FRONTEO, contact [email protected] or visit http://www.fronteo.com/global/.

Safe Harbor Statement
This announcement contains forward-looking statements. These forward-looking statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, the amount of data that FRONTEO expects to manage this year and the potential uses for FRONTEO's new service in intellectual property-related litigation, contain forward-looking statements. FRONTEO may also make written or oral forward-looking statements in its reports filed with, or furnished to, the U.S. Securities and Exchange Commission, in its annual reports to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about FRONTEO's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: FRONTEO's goals and strategies; FRONTEO's expansion plans; the expected growth of the data center services market; expectations regarding demand for, and market acceptance of, FRONTEO's services; FRONTEO's expectations regarding keeping and strengthening its relationships with customers; FRONTEO's plans to invest in research and development to enhance its solution and service offerings; and general economic and business conditions in the regions where FRONTEO provides solutions and services. Further information regarding these and other risks is included in FRONTEO's reports filed with, or furnished to the Securities and Exchange Commission. FRONTEO does not undertake any obligation to update any forward-looking statement, except as required under applicable law. All information provided in this press release and in the attachments is as of the date of this press release, and FRONTEO undertakes no duty to update such information, except as required under applicable law.

CONTACT: FRONTEO Global PR
FRONTEO USA, Inc.
Tel: (212) 924-8242
[email protected]