Sinosoft Technology : VOLUNTARY ANNOUNCEMENT - UPDATE ON THE DISPUTE WITH NANJING SOUTH CHINA SKYTECH TECHNOLOGY CO., LIMITED

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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 UPDATE ON THE DISPUTE WITH NANJING SOUTH CHINA SKYTECH TECHNOLOGY CO., LIMITED

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

In relations to the litigation between Nanjing South China Skytech Technology Co.,Limited 南京 南華擎天資訊科技有限公司 ("Nanjing South China Skytech") and a subsidiary of the Group, Nanjing Skytech Co., Limited 南京擎天科技有限公司 ("Nanjing Skytech") on the intellectual property rights of certain software as well as its infringement, the Group received the judgment

from the court of the first instance, the Higher People's Court of Jiangsu Province (the "Judgment of the First Trial") in respect of the first part of the litigation (regarding the intellectual property rights of certain software) on 30 November 2016, which decided that Nanjing South China Skytech owned the intellectual property right in respect of 13 software out of the 31 software claimed by it.

The Group would like to reiterate that the 31 software that were subject to the dispute in this litigation were all developed by the Group, and the Group owns the intellectual property rights and possesses software products certifications in respect of such software. Based on the legal advice of the Group's litigation lawyers, they are of the view that there are material errors in the facts recognition and application of the law in the Judgment of the First Trial. Thus, the Group will file an appeal to the Supreme People's Court and will submit the appellate petition within this week.

The Group would like to emphasize that, as disclosed in the Prospectus dated on 27 June 2013 published by the Company, any potential economic losses arising as a result of the above case will be borne by the original shareholders.

Shareholders and potential investors of the Company are advised to exercise caution when dealing in the Shares of the Company.

By Order of the Board

Sinosoft Technology Group Limited Xin Yingmei

Chairlady

Hong Kong, 6 December 2016

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