To: Finance Section Editors
[For immediate release]

National Arts Proposes a Spin-off of Its Film Studio and Hotel Business and
Listing on the Main Board of the Singapore Exchange in the form of
Business Trust or Real Estate Investment Trust

(5 April 2017, Hong Kong) National Arts Entertainment and Culture Group Limited (the "Group", stock code: 8228) is pleased to announce that the Group proposed a spin-off of its Xiqiao National Arts Film Studio and National Arts Resort Hotel (collectively the "Xiqiao National Arts Film Studio Project"), and separate listing in the form of business trust or real estate investment trust on the Main Board of the Singapore Exchange (SGX) with a target to have total fund raising proceed of not less than SGD$120 million (HK$670 million) and subject to the maximum limit of 60% of the total market capitalization of listed units. The net proceeds will be used for repayment of debt and related interest as well as general working capital of the Group.

In relation to the spin-off plan, the Group has entered into a 2-year consultancy agreement with Skeel Advisors Private Limited ("Skeel Advisors"), pursuant to which Skeel Advisors will provide advice relating to all listing matters and arrange underwriter. Meanwhile, the Group has entered into a tax advisory agreement and a legal advisory agreement with PricewaterhouseCoopers Singapore Private Limited, one of the four largest international accounting firms in the world, and Clifford Chance Private Limited, a world-renowned law firm, respectively to engage them for tax and legal advice.

Mr. Sin Kwok Lam, Chairman of the Group, stated that, "It will mark a new milestone to the Group if the spin-off listing of Xiqiao National Arts Film Studio Project on SGX succeeded, symbolizing its business steps towards international market. Singapore has been actively promoting the financial industry over the years, it also ranked third in the Global Financial Centres Index, just behind London and New York, in 2016. The spin-off listing will not only introduce more solid investors to the Group, but also broaden the financing channels of the Group. The funds raised by the spin-off listing is intended for clearing the debts of the Group, and the second phase development of the studio as well as the hotel. With the improvement of our gearing ratio and the steady growth of the contributions from sales of studio ticket, lease of shooting areas and hotel rooms, we believe that the Group is entering to harvest period from the cultivation period."

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About National Arts Entertainment and Culture Group Limited (Stock Code: 8228)
National Arts Entertainment and Culture Group Limited is an international-scaled of entertainment, film production and artist management company. The Group's Xiqiao National Arts Studio located in Foshan City, Guangdong province officially opened in 2015, currently covers an area of 444,000 square metres; it incorporates tourism and recreational facilities such as film shooting areas, theme parks, hotel and performing arts complexes to provide the tourists with immersive entertainment experiences.

This press release is released by PR ASIA Consultants Limited, on behalf of National Arts Entertainment and Culture Group Limited.
For more information or enquiries, please contact:
Lorraine Lam / Janice Cheung / Sadie Lo
Tel: (852) 3183 0230 / 3183 0252 / 3183 0260
Fax: (852) 2583 9138
E-mail: nationalarts@prasia.net