The Board of Directors of Digilife Technologies Limited announced that PT Selular Global Net ("SGN"), a subsidiary of the Company in Indonesia had decided not to participate in the distribution agreement renewal process of the telecom operator, XL Axiata in Indonesia and accordingly, have been notified by XL Axiata that the telecom distribution agreement between SGN and XL Axiata shall not be renewed after its term expires on 29 February 2024 ("Non-Renewal"). Following the Non-Renewal, SGN will cease to be a distributor for XL Axiata, with a transition period expected to be completed by 31st March 2024. The decision for Non-Renewal was made after careful consideration of several factors including: Distribution Strategy Changes by XL Axiata: XL Axiata announced in January 2024, of its intention to consolidate its distribution channels from 21 distributors to only 6, with SGN being one of them.

However, this consolidation strategy included substantial reductions in distributor margins and required significant additional capital investment, with uncertain returns. Evolution of Distribution Channels: The Company views the distribution business in Indonesia as a legacy model that may face disruption in the future due to the emergence of new digital channels and organized retail across Southeast Asia, including Indonesia.