Asset Acquisitions and Disposals::Clarification Announcement Relating to the Proposed Disposal of the Pure Group Entities

ISOTEAM LTD.

(Company Registration No: 201230294M)

(Incorporated in the Republic of Singapore on 12 December 2012)

CLARIFICATION ANNOUNCEMENT RELATING TO

THE PROPOSED DISPOSAL OF THE PURE GROUP ENTITIES

Unless otherwise defined or the context otherwise requires, all capitalised terms used herein bear the same meanings as the Announcements (as defined below).

The Board of Directors (the "Board") of ISOTeam Ltd. (the "Company", and together with its subsidiaries, the "Group") refers to:

1. the Company's announcement dated 20 September 2021 (the "Disposal Announcement") relating to the entry into a letter agreement with Coney International Ltd. (the "Purchaser") to dispose the Company's entire equity interest in the Pure Group entities to the Purchaser (the "Proposed Disposal");
2. the Company's announcement dated 21 September 2021 relating to the response to SGX-ST's queries on the Disposal Announcement (the "Response to SGX Queries Announcement"); and
3. the Company's announcement dated 4 October 2021 relating to the variances between the Audited Results and the Unaudited Results (the "Results Adjustments"),

(collectively, the "Announcements").

The Board wishes to provide the updated financial information of the Disposal Announcement and the Response to SGX Queries Announcement, after taking into account the Results Adjustments, as follows:

1. Under paragraph 5.2(b) of the Disposal Announcement - Financial Effects on NTA

Assuming that the Proposed Disposal had been completed on 30 June 2021, being the end of the most recently completed financial year of the Group, the financial effects on the NTA per share of the Group would be as follows (the adjusted figures are underlined for ease of reference):

2. Under paragraph 5.2(c) of the Disposal Announcement - Financial Effects on LPS

Assuming that the Proposed Disposal had been completed on 1 July 2020, being the beginning of the most recently completed financial year of the Group, the profit attributable to Shareholders and the financial effects on the LPS of the Group for FY2021 would be as follows (the adjusted figures are underlined for ease of reference):

1. Under paragraph 5.4 of the Disposal Announcement - Book Value of the Sale Shares The adjusted book value of the Sale Shares is approximately S$4,350,000.
2. Under paragraph 5.7 of the Disposal Announcement - Excess/Deficit of Consideration over Book Value
   Based on the adjusted book value of the Sale Shares as set out in paragraph 3 above, there is no excess Consideration over the said book value.
3. Under paragraph 5.8 of the Disposal Announcement - Gain on Disposal The Proposed Disposal would amount to no gain or loss position.
4. Under paragraph 6 of the Disposal Announcement - Relative Figures Computed Based on Rule 1006 of the Listing Manual
   The adjusted relative figure for the Proposed Disposal computed on the bases set out in Rule 1006(a) of the listing manual of the SGX-ST as well as the corresponding footnote (1) are as follows:

Notes:

1. Computed based on the net liability value of the Sale Shares of S$999,000 as at 30 June 2021 and net asset value of the Group of S$25.47million as at 30 June 2021.

7. Under Company's response to Question 2(b) of the Response to SGX Queries Announcement - Impairment of Goodwill and Investment Amount

The adjusted goodwill impairment at the Group level is S$2.3million and the adjusted investment impairment at the Company level is S$3.3million in FY2021.

Save as disclosed above, the other information contained in the Announcements remain unchanged.

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