1300 Smiles : Response to AFR Article

105 Denham Street Townsville Qld 4810 PO Box 5021 Townsville Qld 4810 tel [phone] | fax [phone] email [e-mail] ABN 91 094 508 166

www.1300SMILES.com.au

ASX ANNOUNCEMENT

Response to press speculation

25 September 2019

1300SMILES Limited notes comments in the Australian Financial Review online last night in relation to its interest in acquiring the Maven Dental Group from NZX listed Abano Healthcare Group Limited (NZX:ABA) and Abano's response today.

1300SMILES confirms that it is in confidential discussions with Abano and is conducting due diligence investigations. The outcome of the due diligence and negotiations is speculative. Shareholders should note that there is no certainty that any agreement will be reached or that any transaction will eventuate from the current or any future discussions or diligence investigations.

A further announcement will be made if the negotiations are completed and result in a binding agreement.

For further information, please contact:

Dr. Daryl Holmes OBEManaging Director [phone] [e-mail]

Mr Kent GreigManaging Director Flagstaff Partners [phone]

ABOUT 1300SMILES LTD

1300SMILES Ltd owns and operates full-service dental facilities at its sites in New South Wales, South Australia, and in the ten major population centres in Queensland. The company continually seeks to expand its presence into other geographical areas throughout Australia. It does so both by establishing its own new operations and by acquiring existing dental practices. The administrative and corporate offices are in Townsville.

1300SMILES enables the delivery of services to patients by providing the use of dental surgeries, practice management and other services to self employed dentists who carry on their own dental practices. The services provided by the company allow the dentists to focus on the delivery of dental services rather than on the administrative aspects of carrying on their businesses. The dentists pay fees to the company for the provision of these services under a Dental Service Agreement with the company. In some circumstances the company also employs qualified dentists.

The dentists who use the company's services range from new graduates to experienced dental professionals. Several dentists who use the company's services have special interests and experience in such areas as endodontics, oral surgery, implants and periodontics and cross-refer work to other dentists who use the company's services.

The company provides comprehensive services in the areas of marketing, administration, billing and collections, and facilities certification and licensing to all participating dentists. The company also provides all support staff, equipment and facilities, and sources all consumable goods using the buying power which derives from such a large group of dental businesses.