Sinosoft Technology : VOLUNTARY ANNOUNCEMENT - ENTERED INTO A COOPERATIVE FRAMEWORK AGREEMENT WITH ANT FINANCIAL TO JOINTLY PROPEL NEW SMART CITY ESTABLISHMENT ACROSS CHINA

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SINOSOFT TECHNOLOGY GROUP LIMITED 中國擎天軟件科技集團有限公司

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 1297) VOLUNTARY ANNOUNCEMENT ENTERED INTO A COOPERATIVE FRAMEWORK AGREEMENT WITH ANT FINANCIAL TO JOINTLY PROPEL NEW SMART CITY ESTABLISHMENT ACROSS CHINA

This announcement is made on a voluntary basis by Sinosoft Technology Group Limited (the "Company", together with its subsidiaries, the "Group").

The board of directors (the "Board") of the Company is pleased to announce that the Group has entered into a cooperative framework agreement (the "Cooperative Agreement") with Ant Financial Services Group (the "Ant Financial") on 24 February 2017. Pursuant to the Cooperative Agreement, the Group will contribute its competencies in government services and low carbon information technology, combining Ant Financial's core strength in "internet services + open", to jointly propel new smart city establishment across China, and pioneer green new smart city development.

Pursuant to the Cooperative Agreement, in the new smart cities that are jointly established by both parties across China, the Group will be responsible for the implementation of new smart city, service interface and data query etc., while Ant Financial will provide technologies such as real-name authentication, real-person authentication, payment and credit. Ant Financial will also provide services facilitating citizens through its Alipay, as well as offer products such as Zhima Credit Score and Zhima Authentication to relevant government clients. On the other hand, the Group will leverage on its competences in low carbon informatization, to integrate Ant Financial's products including Ant Forest, and develop innovative internet-based ecological applications, so as to pioneer green new smart city development.

The Cooperative Agreement is valid for three years. Both parties will sign specific contracts according to the situations in specific projects. The Cooperative Agreement can be extended or re- signed upon negotiation by both parties after its expiration.

The Board believes this Cooperative Agreement will enlarge the area of cooperation in new smart city, leveraging on the foundation of the quartet strategic cooperative framework agreement which the Group entered with Ant Financial, Alibaba Cloud and Zhenjiang People's Government in November 2016. As China plans to launch 100 new smart city pilots during its 13th Five Year Plan (2016 to 2020), the Group will intensify its collaboration with Ant Financial, to make Zhenjiang a sample city, and then jointly promote to other new smart city pilots in Jiangsu and across China, so as to establish convenient and efficient government service platform, and bring about prosperous business opportunities for both parties. In the meantime, both parties will develop internet-based ecological applications on top of the foundation of new smart city and pioneer the green new smart city development. This will not only help different local governments to achieve energy saving and emission reduction, but also expand relevant products and revenue streams for the Group and Ant Financial.

By order of the Board

Sinosoft Technology Group Limited Xin Yingmei

Chairlady

Hong Kong, 27 February 2017

As at the date of this announcement, the executive directors of the Company are Ms. Xin Yingmei and Mr. Yu Yifa, the non-executive Director of the Company is Mr. Hu Xiaoming, Simon, and the independent non-executive directors of the Company are Mr. Kang Choon Kiat, Mr. Kwauk Teh Ming, Walter and Mr. Zong Ping.