Asset Acquisitions And Disposals :: Increase In Share Capital Of Subsidiary And Joint Venture Agreement

TELECHOICE INTERNATIONAL LIMITED

(REG. NO. 199802072R)

1. INCREASE IN SHARE CAPITAL OF SUBSIDIARY
2. JOINT VENTURE AGREEMENT

1. Increase in Share Capital of Subsidiary

   The Board of Directors ("Board") of TeleChoice International Limited ("Company") refers to the Company's announcement on 29 August 2016, in which it was announced that the Company has incorporated a new wholly-owned subsidiary, Planet Smart Services Pte. Ltd. ("PSS") with an issued and paid-up share capital of S$1 comprising one (1) ordinary share ("Share") which is held by the Company.

   The Board wishes to announce that, on 21 September 2016, PSS has increased its issued and paid-up share capital from S$1 to S$100, by issuing fifty (50) and forty-nine

   (49) Shares to the Company and Hun Tock Juan Ronnie ("Ronnie") respectively, at the issue price of S$1 per Share ("Capital Increase"). Following such issuance of Shares by PSS: (a) the Company's shareholding in PSS has been diluted and the Company holds 51% of the total number of issued Shares; and (b) Ronnie holds 49% of the total number of issued Shares. As at the date hereof, PSS remains a subsidiary of the Company.

2. Joint Venture Agreement

The Board wishes to announce that, in conjunction with the issuance of Shares described in paragraph 1 above, the Company has entered into a joint venture agreement dated 21 September 2016 ("JVA") with Ronnie, D-Ron Singapore Pte. Ltd. ("D-Ron") and PSS to regulate the affairs of PSS and the relationship of the Company and Ronnie as shareholders of PSS. Pursuant to the terms of the JVA, the Company and Ronnie have agreed to carry out the business of providing infrastructure engineering services, and other information technology and computer service activities through PSS as the joint venture company ("Joint Venture"). The Joint Venture will allow the Company to tap on the expertise of Ronnie and D-Ron. Apart from being an additional source of revenue for the Company, PSS will enable the Company to broaden its services, which will in turn complement the existing suite of services provided by the Company.

The Joint Venture constitutes a non-discloseable transaction within Chapter 10 of the Listing Manual of the Singapore Exchange Securities Trading Limited.

The Joint Venture will be funded through internal resources, and is not expected to have any material effect on the net tangible asset per share or the earnings per share of the Company for the current financial year.

None of the Directors or the controlling shareholders of the Company have any interest, direct or indirect, in the Capital Increase or the Joint Venture, other than through their respective shareholding interests in the Company.

By Order of the Board

Lim Shuh Moh Vincent President

21 September 2016