The board of directors of Singapore Medical Group Limited referred to the announcement dated 26 November 2014 in relation to the non-binding memorandum of understanding entered into with Sansung Life & Science Co. Ltd. Further to the announcement, the board announced that the company has on 21 January 2015 entered into a joint venture agreement with SLS with the objective to establish a company to engage in the aesthetics business and sales of aesthetic related range of products in the South-East Asia region. Pursuant to the joint venture agreement, a joint venture company, a limited liability company, will be incorporated in the Republic of Singapore with an issued and paid-up capital of USD 1,000,000 consisting of 1 million shares which shall be subscribed, paid up and owned by SMG and SLS.

Under the joint venture agreement, the parties agree that: SMG shall in its best effort obtain the licenses, conduct the recruitment of doctors, nurses, and/or paramedic and non-medic staff, procurement of equipment, and other preparation for operational of the JV company. SLS shall provide training and transfer of skills and knowledge to doctors, nurses and medical staff of the JV Company, uses its knowledge and capabilities to research, develop and manufacture new cosmetics products, and grant an exclusive right to the JV company to distribute and sell the new range of products in the South-East Asia region.