Town Health International Medical : VOLUNTARY ANNOUNCEMENT - UPDATE ON LITIGATION

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Town Health International Medical Group Limited

康健國際醫療集團有限公司

(Incorporated in the Cayman Islands and continued in Bermuda with limited liability)

(Stock Code: 3886)

VOLUNTARY ANNOUNCEMENT - UPDATE ON LITIGATION

References are made to (i) the announcement of Town Health International Medical Group Limited (the "Company") dated 4 November 2016 in relation to, among others, the disposal of Wise Lead Holdings Limited; (ii) the announcement of the Company dated 12 April 2019 and 10 May 2019, respectively, in relation to the commencement of legal proceedings by TH (BVI) against the Purchaser in the Court of First Instance of the High Court of Hong Kong and the contemplated legal action against the Purchaser in Mainland China in connection with all outstanding sums owing by the Purchaser to TH (BVI) under the Promissory Note (collectively, the "Proceedings"). Unless otherwise defined, capitalised terms used in this announcement shall have the same meanings as those defined in the aforesaid announcements.

On 23 April 2021, TH (BVI) received a notice (the "Notice") and a court summons issued by the Hangzhou Intermediate People's Court, Zhejiang Province of the PRC (the "PRC Court"), pursuant to which, among others:

1. the counterclaim (the "Counterclaim") filed by Mr. Dai Haidong (i.e. the Purchaser and the defendant to the Proceedings) has been accepted by the PRC Court and will be heard together with TH (BVI)'s original claim against Mr. Dai Haidong;

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1. TH (BVI), as the defendant to the Counterclaim, is required to submit its defence to the Counterclaim within 15 days upon receipt of the statement of counterclaim; and
2. each party to the Counterclaim is required to submit evidence to the PRC Court to support the Counterclaim (or the defence thereto) within 30 days from the date of the Notice.

The Company will consider the appropriate causes of action following consultation with its PRC legal advisers, and will make further announcement(s) to update its shareholders and investors of any material development as and when appropriate.

By order of the Board

Town Health International Medical Group Limited

Jin Zhaogen

Executive Director and Chief Executive Officer

3 May 2021

As at the date of this announcement, the executive Directors are Mr. Jin Zhaogen (Chief Executive Officer) and Ms. Zhao Xiangke (Chief Financial Officer), the non-executive Directors are Mr. Zhao Hui (Chairman) and Mr. Hou Jun; and the independent non-executive Directors are Mr. Ho Kwok Wah, George, MH, Mr. Yu Xuezhong and Dr. Xu Weiguo.

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