Intueri Education : IQE - Update on Strategic Review and Dive School Sale

NZX RELEASE

1 May 2017

IQE - UPDATE ON STRATEGIC REVIEW PROGRESS AND DIVE SCHOOL SALE

Intueri Education Group Limited (NZX: IQE) has today provided an update on its strategic review, which was announced on 3 February 2017, and advises that the sale of its Dive School has not yet been finalised as expected by the end of April.

• Strategic review well progressed with interest from multiple parties for New Zealand businesses (less the Dive School). Indicative bids are below level of bank debt, which would result in insufficient residual assets to operate a sustainable business or make any return to shareholders

• Bank standstill remains in place during strategic review, ensuring continuation of normal operations

• Dive School sale not yet finalised; Intueri exploring options with other parties

• Intueri recommends caution to those investors trading in Intueri shares

Since February 2017, Intueri's Board and management have been undertaking a detailed and carefully considered strategic review and assessing capital restructuring and strategic options, including the potential divestment of the New Zealand business operations. Since the review was initiated, Intueri has ceased operations in Australia.

Significant interest has now been received from multiple parties expressing an indicative interest in acquiring the balance of Intueri's businesses in New Zealand (excluding the Dive School), which are well regarded Category 1 Private Training Establishment (PTE) providers. However, none of the indicative offers are for an amount over the current level of debt that Intueri owes its bank. If a bid at the levels indicated did eventuate and progress to completion, the sale would not be enough to repay the full amount of the Intueri bank debt. Intueri would then have insufficient residual assets with which to operate a sustainable business, clear remaining bank debt or to make any return to shareholders.

Intueri retains the support of its bank under a standstill agreement whilst the strategic review is in progress, and Intueri's New Zealand businesses continue to be able to meet obligations currently being incurred. The borrower of Intueri's bank debt is the parent company of the Group and, if sold, the New Zealand businesses would be released from their guarantees of the parent company debt. The New Zealand businesses are trading profitably and continue to maintain normal operations, ensuring continuation of learning opportunities for students.

Intueri advises that the sale of the Dive School has not yet been finalised. It was originally anticipated to complete by the end of March, however this was extended to the end of April to allow the proposed purchaser to complete settlement documentation and provide the necessary information to the NZQA for change of ownership approval. This has still not been finalised and Intueri is now exploring options with other parties to divest this college. In the meantime, the Dive School will maintain normal operations under Intueri management.

Intueri is working through the implications of the above matters as the strategic review progresses. Intueri again recommends that persons considering trading in Intueri shares ensure that they understand the implications of this announcement and seek professional advice prior to doing so.

-Ends-

For more information, please contact:

Rod Marvin Interim CEO

[phone]

[e-mail]

About Intueri:

Intueri Education is a New Zealand headquartered group of private training establishments delivering vocational education to students in New Zealand and from around the world. We provide industry-appropriate courses and qualifications across a diverse range of industries, working closely with those industries to ensure training remains relevant and employment- outcome focused. Intueri is listed on the NZX under the ticker symbol IQE.