Vita : VTG - Special Dividend and Dividend Reinvestment Plan

Vita Group Limited ACN 113 178 519 77 Hudson Road Albion QLD 4010

26 April 2022

Market Announcements Office Australian Securities Exchange 4th Floor, 20 Bridge Street SYDNEY NSW 2000

ELECTRONIC LODGEMENT

Dear Sir or Madam

Vita Group Limited - Market Update

In accordance with the Listing Rules, please find attached for immediate release a market update announcement by Vita Group Limited (ASX: VTG).

Authorised for lodgement by Vita Group's Board of Directors.

Yours sincerely

George Southgate

Chief Legal & Risk Officer | Group Company Secretary Vita Group Limited

ASX ANNOUNCEMENT

Vita Group confirms payment of the final tranche of the Special Dividend

Tuesday, 26 April 2022

Vita Group Limited (ASX: VTG) (Vita or Vita Group) today reaffirmed the group's strategy to grow its Artisan business organically through improving client experiences and greenfield expansion with less emphasis on acquisitions of existing clinics. It also announced re-activation of its Dividend Reinvestment Plan (DRP) for payment of the final tranche of the Special Dividend announced on 24 September 2021.

Special Dividend

Since releasing its half-year announcement1, Vita has continued to focus its attention on building programs to grow the Artisan business organically and sustainably, despite ongoing uncertainty and business disruption relating to COVID-19, with a view to Vita returning to profit in the medium term.

With the divestment of Vita's ICT business to Telstra now largely finalised, having regard to Vita's strategy for the Artisan business outlined in this announcement, Vita's Board has reviewed the capital requirements necessary to fund the growth of Artisan.

Following this review, the Board has determined to pay $0.133 cents per share, equating to $22 million, as the final tranche of the fully franked Special Dividend. The final tranche of the Special Dividend is scheduled for payment on 10 May 2022 to shareholders on record as at 6 May 2022.

Together with the first tranche of the Special Dividend, being $0.39 cents per share (equating to $64.6 million) paid to eligible shareholders on 26 November 2021, this represents a total return of proceeds to shareholders of $86.6 million.

Whilst this announcement marks the finalisation of Vita's divestment of its ICT business to Telstra, some ongoing legacy-related costs, including historical directors-related insurance and head office lease obligations, will continue to be carried by Vita Group.

Re-activation of Dividend Reinvestment Plan

The Board has today announced that the DRP, which was suspended on 20 August 2021, will be reactivated for the final tranche of the Special Dividend at a 7.5% discount to the VWAP of Vita shares for the 10 trading days before the record date in accordance with the DRP rules.

The DRP rules have also been amended with effect from today by resolution of the Vita Board in accordance with clause 13.1 of the DRP rules to reflect changes to the ASX Listing Rules that have come into effect since the DRP rules were first adopted in 2014 and, among other things, to provide the Board with more flexibility to determine the pricing of shares taken up under the DRP. In accordance with clause 13.4 of the DRP rules, each shareholder's existing DRP status will be reinstated unless Vita is notified by a shareholder to the contrary in accordance with the DRP rules. In accordance with ASX Listing Rule 3.10.8, a copy of the updated DRP rules is attached to this announcement.

The proposed dates for the Special Dividend and DRP are as follows:

1 Vita Group delivers interim revenues in line with guidance, 25 February 2022

The Board has also amended Vita's Share Trading Policy to provide for common exclusions from the trading restrictions set out in that policy, including participation in the DRP. In accordance with ASX Listing Rule 12.10, a copy of the revised Share Trading Policy will be disclosed to ASX in a separate announcement.

Copies of the revised Share Trading Policy and DRP are also available on Vita's websitehttps://vitagroup.com.au/shareholders/corporate-governance/).

Although COVID-19 continues to present some uncertainty, Vita believes that it is well positioned to execute on its priority to organically grow Artisan. Vita also believes that the medium and long-term growth prospects of the broader skin-health and wellness (SHAW) industry in Australia are strong with increasing awareness of and demand for an expanding range of treatments and services. These factors, combined with Vita's experience and history of execution on operational priorities, have led Vita to believe that there is significant growth potential.

This announcement has been authorised for lodgement by VTG's Board of Directors.

Further enquiries:

Vita Group Limited

Dividend Reinvestment Plan

Updated 26 April 2022

Vita Group Limited

Dividend Reinvestment Plan

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Summary of Dividend Reinvestment Plan

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