Proposed disposal of a wholly-owned subsidiary

The Board of Directors (Board) of Nippecraft Limited (Company, and together with its subsidiaries, the Group) wishes to announce that it has entered into a sale and purchase agreement (Agreement) on 21 August 2014 with Royalton Capital Pte Ltd (Purchaser), an unrelated party of the Company, for the proposed disposal by the Company to the Purchaser of the entire issued and paid-up share capital of Jinmei Industrial Sdn Bhd (Subsidiary) comprising 3,272,140 ordinary shares (Sale Shares) for a cash consideration of US$1,000,000 (Proposed Disposal).

The Subsidiary is in the business of manufacturing and sales of organisers, diaries, calendars, bathroom tissue and other related products.