NetDragon Websoft : VOLUNTARY ANNOUNCEMENT - POTENTIAL TRANSACTION

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

NetDragon Websoft Holdings Limited

網龍網絡控股有限公司

(incorporated in the Cayman Islands with limited liability)

(Stock Code: 777)

VOLUNTARY ANNOUNCEMENT

POTENTIAL TRANSACTION

This is a voluntary announcement made by NetDragon Websoft Holdings Limited (the "Company", together with its subsidiaries, the "Group").

The board of directors (the "Board") of the Company would like to inform the shareholders of the Company (the "Shareholders") and potential investors that the Company is in discussions with a company mainly engaged in education related business (the "Target Company") and its controlling shareholders, regarding a potential transaction involving acquisition of and/or other corporate actions related to the Target Company.

As at the date of this announcement, no material terms concerning the Potential Transaction have been agreed and the Company has not entered into any definitive agreement in relation to the Potential Transaction. The Board will make further announcement as and when necessary in compliance with the Listing Rules and will comply with relevant provisions and the Listing Rules and applicable laws in relation to the Potential Transaction.

The Potential Transaction may or may not materialize. Shareholders and potential investors are reminded to exercise caution when dealing in the securities of the Company.

By order of the Board

NetDragon Websoft Holdings Limited

Liu Dejian

Chairman

Hong Kong, 22 September 2020

As at the date of this announcement, the Board comprises five executive Directors, namely Mr. Liu Dejian, Dr. Leung Lim Kin Simon, Mr. Liu Luyuan, Mr. Zheng Hui and Mr. Chen Hongzhan; one non-executive Director, namely Mr. Lin Dongliang; and three independent non-executive Directors, namely Mr. Chao Guowei, Charles, Mr. Lee Kwan Hung, Eddie and Mr. Liu Sai Keung, Thomas.