The board of directors of Singapore Medical Group Limited announced that the company has on November 26, 2014 entered into a non-binding memorandum of understanding with Sansung Life & Science Co. Ltd. (Leaders) in relation to a proposed joint venture. Pursuant to the memorandum of understanding, the company and Leaders have agreed to explore the formation of a joint venture entity in Singapore which will engage in the aesthetics and dermatology businesses and distribution of dermatological and cosmeceutical products in the South- East Asia region.

The company and Leaders will hold 51% and 49% equity interest respectively in the Joint Venture Entity. The entry into the memorandum of understanding is not expected to have material effects on the net tangible assets per share and earnings per share of the group for the financial year ending December 31, 2014. The memorandum of understanding is valid for 6 months and is subject to entry into a definitive joint venture agreement by the company and Leaders.

Shareholders and potential investors of the company are advised to exercise caution in dealing with the securities of the company as there is no certainty or assurance that as at the date of this announcement the definitive joint venture agreement will be entered into or the Joint Venture will be undertaken at all.