SIM Technology : DECLARATION OF SPECIAL DIVIDEND AND CLOSURE OF REGISTER OF MEMBERS

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SIM TECHNOLOGY GROUP LIMITED 晨訊科技集團有限公司*

(Incorporated in Bermuda with limited liability)

(Stock code: 2000)

DECLARATION OF SPECIAL DIVIDEND

AND

CLOSURE OF REGISTER OF MEMBERS

Reference is made to the announcements of the Company dated 21 December 2017 and 13 February 2018 and the circular of the Company dated 18 January 2018 (the "Circular") in relation to the sale and purchase agreement dated 21 December 2017 and entered into among the Company, Simcom International Holdings Limited, 深圳日海通訊技術股份有限公司 (Shenzhen Sunsea Communication Technology Co., Ltd.*), Shanghai Simcom Electronic Limited (上海芯通電子有限公司) and Shanghai Simcom Wireless Solutions Limited (芯訊通無線科技 (上海)有限公司) in respect of the sale and purchase of all the equity interest in Shanghai Simcom Electronic Limited (上海芯通電子有限公司) and Shanghai Simcom Wireless Solutions Limited (芯訊通無線科技(上海)有限公司) and the transactions contemplated thereunder (including the IP Transfer (as defined in the Circular)). Unless otherwise defined, capitalised terms used in this announcement have the same meanings as defined in the Circular.

Reference is also made to the announcement of the Company dated 10 May 2018 in relation to the completion of a major transaction and date of meeting of the Board to approve the payment of the special dividend.

As stated in the Circular, it is expected that approximately 35% of the actual net gain from the transactions contemplated under the Sale and Purchase Agreement (the "Net Gain") will be used for the payment of a special interim dividend. Based on the financial informationcurrently available, it is estimated that Net Gain is approximately HK$364.4 million and 35% of the Net Gain is approximately HK$127.5 million.

The Board is pleased to announce that at the Board meeting held on Wednesday, 23 May 2018, the Board has resolve to declare a special dividend (the "First Special Dividend") of HK4 cents per Share, amounting to approximately HK$102.4 million in total.

It is expected that the Board will declare another special dividend in the aggregate amount of approximately HK$25.5 million after the full consideration of the Disposal is received by the Company.

CLOSURE OF REGISTER OF MEMBERS

For determining Shareholders' entitlement to receive the First Special Dividend:

During the periods of the closure of register of Shareholders, no share transfers will be registered. For registration, all transfer documents accompanied by the relevant share certificates, must be lodged with the Company's branch share registrar and transfer office in Hong Kong, Computershare Hong Kong Investor Services Limited, Shops 1712-16, 17th

Floor, Hopewell Centre, 183 Queen's Road East, Wanchai, Hong Kong before the relevant latest time to lodge transfers.

By order of the Board

SIM Technology Group Limited

Wong Cho Tung Executive Director

23 May 2018

As at the date of this announcement, the executive directors of the Company are Ms Yeung Man Ying, Mr Wong Cho Tung, Ms Tang Rongrong, Mr Chan Tat Wing, Richard and Mr Liu Jun, and the independent non-executive directors of the Company are Mr Liu Hing Hung, Mr Wang Tianmiao and Mr Wu Zhe.

* For identification purposes only