Financial Statements and Related Announcement::Discrepancies between unaudited and audited accounts

ISOTEAM LTD.

(Company Registration No: 201230294M)

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

ANNOUNCEMENT PURSUANT TO RULE 704(5) OF THE CATALIST RULES - ADJUSTMENTS TO PRELIMINARY FINANCIAL RESULTS ANNOUNCEMENT FOR THE FINANCIAL YEAR ENDED 30 JUNE 2021

The Board of Directors (the "Board") of ISOTeam Ltd. (the "Company" and together with its subsidiaries, the "Group") refers to the unaudited financial results announcement for the financial year ended 30 June 2021 ("FY2021") dated 27 August 2021 (the "Unaudited Results").

Pursuant to Rule 704(5) of the Listing Manual Section B: Rules of Catalist of the Singapore Exchange Securities Trading Limited, the Board wishes to announce that subsequent to the release of the Unaudited Results, the Company's external auditor has proposed certain adjustments and reclassifications to the audited financial statements for FY2021 (the "Audited Results") following the finalisation of the auditor's report (the "Independent Auditor's Report").

The Independent Auditor's Report will form part of the Company's annual report for FY2021 (the "2021 Annual Report"), which will be released on SGXNET in due course. Shareholders are advised to read the Independent Auditor's Report and the 2021 Annual Report in their entirety.

Below are the details of the variances between the Audited Results and the Unaudited Results:

Consolidated Statement of Comprehensive Income

Explanatory notes:

1. Impairment loss on receivables and contract assets increased by S$3,059K was due to impairment of sundry receivables from a third party in accordance with SFRS(I) 9.5.5.8.
2. Other operating expenses decreased by S$3,059K was due to reversal of impairment of goodwill subsequent to the announcement of disposal of Pure Group entities. See Note C for more details.
3. Goodwill increased by S$3,059K was due to adjustment to record the carrying value for goodwill of Pure Group entities based on fair value less cost of disposal in accordance with SFRS(I) 1-36.105. The fair value less cost of disposal is determined based on cash consideration for the proposed disposal of Pure Group entities as announced on 20 September 2021.
4. Trade and other receivables decreased by S$7,310K was due to impairment of S$3,059K sundry receivables from a third party; and reclassification from contract assets and trade and other payables of S$4,251K.
5. Contract assets and trade and other payables decreased by S$3,122K and S$8,173K respectively was due to reclassification of accounts to trade and other receivables and loans and borrowings.

Notwithstanding the above adjustments in the consolidated statement of comprehensive income, there were no changes to the net loss after tax, as well as the net loss attributable to equity holders of the Company. There were also no changes to the net asset value of the Group as at 30 June 2021.

By Order of the Board

Anthony Koh Thong Huat

Executive Director and Chief Executive Officer

4 October 2021

This announcement has been prepared by the Company and its contents have been reviewed by the Company's Sponsor, Hong Leong Finance Limited. It has not been examined or approved by the Exchange and the Exchange assumes no responsibility for the contents of this announcement, including the correctness of any of the statements or opinions made, or reports contained in this announcement.

The contact person for the Sponsor is Mr Kaeson Chui, Vice President, at 16 Raffles Quay, #01-05 Hong Leong Building, Singapore 048581, Telephone (65) 6415 9886.