MEDIROM Healthcare Technologies Inc. Announces Preliminary, Unaudited Financial Results for Full Year 2022 under Japanese GAAP Continuous Strong Revenue Growth / Turned into Operating Profitability New York

MEDIROM Healthcare Technologies Inc. Announces

Preliminary, Unaudited Financial Results for

Full Year 2022 under Japanese GAAP

Continuous Strong Revenue Growth / Turned

into Operating Profitability

York - January 18, 2023 - MEDIROM Healthcare Technologies Inc. (Nasdaq CM: MRM), a holistic healthcare company based in Japan

(the "Company"), today announced its preliminary, unaudited financial results for the year ended December 31, 2022, prepared

under Japanese GAAP ("JGAAP"). These preliminary financial

results and management's estimates included in this press release are unreviewed, unaudited, and preliminary, are prepared solely

in accordance with JGAAP, have not been reviewed or audited under U.S. GAAP, and are based solely on information available to the management

of the Company and management's assumptions and expectations as of the date of this press release, which remain subject to change.

Actual results for the year ended December 31, 2022 remain subject to the completion of management's reviews and reconciliations

and/or adjustments under U.S. GAAP, the Company's other financial closing procedures, and the audit by the independent auditor in

accordance with U.S. GAAP, and may differ from these estimated preliminary results due to the completion of the Company's financial

closing procedures, the audit under U.S. GAAP, and other developments that may arise during the audit process. Accordingly, you should

not place undue reliance on this preliminary information. See "Important Notice Regarding these Preliminary Financial Results

and Management's Estimates" below.

The Company is currently working with its independent

registered public accounting firm to complete the audit of its financial results for the year ended December 31, 2022 in accordance with

U.S. GAAP and to prepare its Annual Report on Form 20-F containing the audited financial statements for full year 2022. The Company intends

to file such Annual Report by the filing deadline prescribed by the SEC.

Preliminary Financial Results Overview for

the Year Ended December 31, 2022 under JGAAP:

- The unaudited, preliminary total revenue

for the year ended December 31, 2022 is expected to be approximately JPY6.5 billion ($49.3 million)(1), representing a projected

increase of JPY1.1 billion ($8.3 million)(1) from the total revenue reported in accordance with U.S. GAAP for the year ended

December 31, 2021. Such increase was primarily due to the full-year revenue contribution of two subsidiaries, SAWAN and ZACC, which were

acquired by us during 2021, an increase in the revenue from sales of our directly-owned salons to investors, which sales were commenced

in the fourth quarter of 2021, and an increase in sales at our directly-operated salons as a result of the recovery from COVID-19 in 2022.

- The unaudited, preliminary operating expenses

are expected to be approximately JPY6.26 billion ($47.5 million)(1) for the year ended December 31, 2022, representing a

projected increase of JPY380 million ($2.9 million)(1) from the operating expenses reported in accordance with U.S. GAAP

for the year ended December 31, 2021. Such increase was primarily due to an increase in outsourcing fees paid to contract-based therapists,

and increased payroll expense for therapists, hair dressers, and corporate staff in 2022.

- The unaudited, preliminary operating income

is expected to be to approximately JPY240 million ($1.8 million)(1) for the year ended December 31, 2022, representing a projected

increase of JPY711 million ($5.4 million)(1) from the operating loss reported in accordance with U.S. GAAP for the year ended

December 31, 2021. Such increase was primarily due to the increase in total revenue outpacing the increase in operating expenses in 2022.

(1) Convenience translations

included in this press release of Japanese yen into U.S. dollars have been made at the exchange rate of JPY131.810 = US$1.00, which

was the foreign exchange rate on December 30, 2022 as reported by the Board of Governors of the Federal Reserve System in weekly

release on January 3, 2023.

*Actual results for the year ended December 31,

2022 remain subject to the completion of management's reviews and reconciliations and/or adjustments under U.S. GAAP, the Company's

other financial closing procedures, and the audit by the independent auditor in accordance with U.S. GAAP, and may differ from these estimated

preliminary results due to the completion of the Company's financial closing procedures, the audit under U.S. GAAP, and other developments

that may arise during the audit process. Accordingly, you should not place undue reliance on these preliminary results. See "Important

Notice Regarding these Preliminary Financial Results and Management's Estimates" below.

Key Performance Indicators, or KPIs, for the

Year Ended December 31, 2022:

The Company reported major Key Performance Indicators,

or KPIs, for the year ended December 31, 2022. Data is provided for all salons for which comparative financial and customer data is available

and excludes certain salons where such information is not available.

Management Discussion

Kouji Eguchi, CEO of the MEDIROM Healthcare

Technologies, said, "We are pleased with the revenue growth and improved operating income achieved under local GAAP during the

year ended December 31, 2022, based on the unaudited, preliminary financial results prepared under JGAAP. Our directly-operated

salons and our franchised salons contributed in very complementary ways to the strong operational results of the year, as well as

the growth of the sales of directly-owned salons to investors, which has become our new revenue model. In addition, the revenue

contribution from our acquired salons, which reflected the implementation of our M&A strategy, coupled with the encouraging

recovery from COVID-19, led to a steady operating performance this year. Although COVID-19 continued to have an impact on the

general economy in 2022, the entire MEDIROM team coalesced around our goals and were able to mitigate the impact and finish the year

on a strong note. We intend to work diligently with our independent auditor to complete the audit of our 2022 financial results

under U.S. GAAP. We hope to continue our growth momentum in 2023."

Important Notice Regarding these Preliminary Financial Results and

Management's Estimates

financial results and management's estimates included in this press release are unreviewed, unaudited, and preliminary, are

prepared solely in accordance with JGAAP, have not been reviewed or audited under U.S. GAAP, and do not

present all information necessary for an understanding of the Company's results of operations for the year ended December 31, 2022.

These preliminary financial results for the year ended December 31, 2022 and management's estimates presented in this press release

are based solely on information available to the management of the Company and management's assumptions and expectations as of the

date of this press release, which remain subject to change. Actual results for the year ended December 31, 2022 remain subject to the

completion of management's reviews and reconciliations and/or adjustments under U.S. GAAP,

the Company's other financial closing procedures, and the audit by the independent auditor

in accordance with U.S. GAAP, and may differ from these estimated preliminary results due to the

completion of the Company's financial closing procedures, the audit under U.S. GAAP, and other

developments that may arise during the audit process.

The Company expects the actual results may differ

from these preliminary results contained in this press release in revenue recognition of franchise membership fees (as-billed basis in

this preliminary result while as-earned basis during the estimated franchising periods after conversion) when converted from JGAAP into

U.S. GAAP, the impact of which, based upon management's current assumption and estimates, is believed to be insignificant. Other

potential changes from the these preliminary financial results could result from the conversion into U.S. GAAP , among others, of the

following line items: (1) recognition of impairment losses on our long-lived salon assets; (2) recognition of impairment losses on our

goodwill and other intangible assets; (3) increase/decrease in allowance or provisional expenses; (4) increase/decrease in cost of goods

sold or inventories, particularly those related to MOTHER Bracelet , which are currently calculated based on standard

costs and subject to adjustments into actual costs primarily due to changes in foreign currency exchange rates.

The preliminary financial results for the year

ended December 31, 2022 included in this press release have been prepared by and are the responsibility of the Company's management.

The Company's independent auditor has not audited, reviewed, compiled, or performed any procedures with respect to the preliminary

financial results presented in this press release either under JGAAP or U.S. GAAP. Accordingly, the Company's independent auditor

does not express an opinion or any other form of assurance with respect thereto.

The Company intends to file its Annual Report

on Form 20-F containing the audited financial statements for the year ended December 31, 2022 prepared in accordance with U.S. GAAP by

the filing deadline prescribed by the SEC, and such financial information for 2022 contained in the Annual Report, including the audited

the Company's financial statements prepared in accordance with U.S. GAAP, may differ from those disclosed in this preliminary annual

results press release. As such, these estimates should not be viewed as a substitute for the Company's audited annual financial

statements prepared in accordance with U.S. GAAP and are not necessarily indicative of any future period. Accordingly, you should not

place undue reliance on this preliminary information.

About MEDIROM Healthcare Technologies Inc.