Q & M Dental Singapore : Announcement Of Arbitral Award

Q & M DENTAL GROUP (SINGAPORE) LIMITED

(Company Registration Number 200800507R)

(Incorporated in the Republic of Singapore)

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ANNOUNCEMENT OF ARBITRAL AWARD

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The board of directors (the "Board" or "Directors") of Q & M Dental Group (Singapore) Limited ("Q & M" or the "Company", wishes to make an announcement regarding the arbitration proceedings commenced with the Singapore International Arbitration Centre (the "Arbitration") by the Group's wholly-owned subsidiary, Q&M Dental Group (China) Pte. Ltd. ("QDGC") against Dr. Lou Tie Ying ("Dr. Lou") pursuant to a put and call option agreement dated 30 July 2010 (the "Option Agreement").

The Arbitration pertains to disputes between QDGC and Dr. Lou in respect of, inter alia, the exercise of a put option requiring Dr. Lou to purchase from QDGC its 50% shareholding in a joint venture entity in Nanjing, the People's Republic of China ("PRC").

The Board is pleased to announce that the arbitral tribunal has issued an arbitral award in favour of QDGC ("Award"), ordering Dr. Lou to make the following payments to QDGC:

1. S$3,080,588.15, being the claim amount under the Option Agreement;
2. S$75,100.16, being the legal costs incurred by QDGC; and
3. S$107,705.18, being the costs of the Arbitration.

As disclosed by the Company in its announcement dated 11 March 2020 responding to certain queries from the Singapore Exchange Securities Trading Limited ("SGX-ST") in respect of its announcement dated 27 February 2020 in relation to, inter alia, the Company's full year financial statements for the for the year ended 31 December 2019, QDGC is not a significant subsidiary of the Group and the amount claimed is not substantial. As announced by the Company on 7 September 2017 in response to an SGX-ST query that the full investment amount in respect of the Nanjing joint venture had been impaired, accordingly, the Board is of the view that the Arbitration has no material impact on the Company's financial performance. Please refer to the Company's announcements dated 11 March 2020 and 7 September 2017 for further information on the above impairment.

Following the arbitral tribunal's decision, the Company is in the process of obtaining legal advice from PRC legal counsel in respect of the enforcement of the Award in the PRC.

The Board will provide further updates in the event of any material developments, where appropriate.

Shareholders are advised to exercise caution when dealing in the securities of the Company and to refrain from taking any action in relation to their shares which may be prejudicial to their interests.

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By Order of the Board

Q & M Dental Group (Singapore) Limited

Vitters Sim

Chief Financial Officer

29 May 2021

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For more information, please contact:

Chief Financial Officer

Vitters Sim

Tel: [phone]

Email: [e-mail]

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