Asset Acquisitions and Disposals::PROPOSED ACQUISITION OF GAINHEALTH PTE. LTD. - PARTIAL PAYMENT OF OUTSTANDING CASH CONSIDERATION

Metal Component Engineering Limited

(Incorporated in the Republic of Singapore)

(Company Registration 198804700N)

PROPOSED ACQUISITION OF GAINHEALTH PTE. LTD.

• PARTIAL PAYMENT OF OUTSTANDING CASH CONSIDERATION

The board of directors (the "Board") of Metal Component Engineering Limited (the "Company") refers to:

1. the Company's circular to shareholders of the Company ("Shareholders") dated 23 June 2021
   (the "Circular") in relation to the proposed acquisition of Gainhealth Pte Ltd ("Proposed Acquisition") and the proposed diversification into the healthcare business and the e-commerce business ("Proposed Diversification");
2. the Company's announcement dated 8 July 2021 in relation to the receipt of the approval in- principle for the listing and quotation of the new shares to be allotted and issued pursuant to the Proposed Acquisition;
3. the Company's announcement dated 8 July 2021 in relation to the results of the extraordinary general meeting held on 8 July 2021 where Shareholders approved the Proposed Acquisition and the Proposed Diversification;
4. the Company's announcement dated 13 July 2021 in relation to, inter alia, the completion of the Proposed Acquisition;
5. the Company's announcement dated 14 July 2021 in relation to the allotment and issuance of
   5,743,243 new shares to the arranger; and
6. the Company's announcement dated 15 July 2021 in relation to the partial payment of outstanding cash consideration to JPS.

Unless otherwise defined or the context otherwise requires, all capitalised terms used herein shall bear the same meaning as ascribed to them in the Circular.

The Board wishes to update Shareholders that as mutually agreed between the Company and JPS, the Company had on 27 July 2021 paid S$800,000, being partial payment of the outstanding cash consideration of S$1,500,000 to JPS.

As at the date of this announcement, the outstanding cash consideration payable to JPS is S$700,000. The Company and JPS have mutually agreed for full payment of the outstanding S$700,000 to be paid in due course.

Notwithstanding the abovementioned arrangement on the payment of the remaining balance of the cash consideration to JPS, the entire Sale Shares were transferred to Metal Precision Services Pte. Ltd. on 13 July 2021. The Company will update shareholders as and when the outstanding cash consideration is fully paid to JPS.

By Order of the Board

Lee Wei Hsiung

Company Secretary

27 July 2021

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This announcement has been prepared by the Company and its contents have been reviewed by the Company's sponsor, ZICO Capital Pte. Ltd. ("Sponsor"), in accordance with Rule 226(2)(b) of the Singapore Exchange Securities Trading Limited ("SGX-ST") Listing Manual Section B: Rules of Catalist ("Catalist Rules").

This announcement has not been examined or approved by the SGX-ST and the SGX-ST assumes no responsibility for the contents of this announcement, including the correctness of any of the statements or opinions made or reports contained in this announcement.

The contact person for the Sponsor is Ms Alice Ng, Director of Continuing Sponsorship, ZICO Capital Pte. Ltd., at 8 Robinson Road #09-00 ASO Building, Singapore 048544, telephone [phone].

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