General Announcement::RESPONSE TO QUESTIONS IN CONNECTION WITH THE COMPANY ANNUAL REPORT FOR FY ENDED 31 MARCH 2021

RESPONSE TO QUESTIONS IN CONNECTION WITH THE

COMPANY'S ANNUAL REPORT FOR THE FINANCIAL YEAR ENDED

31 MARCH 2021

The Board of Directors (the "Board") of Addvalue Technologies Ltd (the "Company" and together with its subsidiaries, the "Group") hereby enclosed the response of the Company to the questions raised by the shareholders of the Company (the "Shareholders") and the Securities Investors Association (Singapore) ("SIAS") in connection with the annual report of the Company for the financial year ended 31 March 2021 ("FY2021") released on 14 September 2021.

Some of the statements contained in the enclosed response constitute 'forward-looking statements' that do not directly or exclusively relate to historical facts. These forward- looking statements reflect the Company's current intentions, plans, expectations, assumptions, and beliefs about future events and are subject to risks, uncertainties and other factors, many of which are outside the control of the Company and may affect the extent of the realization of the Company's prevailing indicative orders for the financial year ending 31 March 2022 and beyond. Important factors that could cause actual results to differ materially from the expectations expressed or implied in the forward- looking statements include known and unknown risks and factors such as general economic and business conditions, including the uncertainties arising from the current ongoing trade war and stand-off between US and China; continued concerns of the scale of the possible adverse fallouts and their implications on the global scene triggered by the prevailing global Covid-19 pandemic as well as other political and economic issues confronting the world; deflationary pressures and undue currency movements; change in technology; delay in signing, commencement, implementation and performance of programs, or the delivery of products or services under them or the implementation of improved airtime package by the satellite operators. Because actual results could differ materially from our intentions, plans, expectations, assumptions and beliefs about the future and any negative impacts arising from these issues will affect the performance of the Group's businesses, undue reliance must not be placed on these statements.

BY ORDER OF THE BOARD

Dr Colin Chan Kum Lok

Chairman & CEO

27 September 2021

RESPONSE TO QUESTIONS IN CONNECTION WITH THE COMPANY'S

ANNUAL REPORTFOR THE FINANCIAL YEAR ENDED 31 MARCH 2021

S/N	Enquirer	Question	The Company's Response on 27 September 2021
1	Lo Tak Meng,	1. The Company is skipping from	The Group, being a people oriented and technology-based (rather than a
	a Shareholder	one financing episode to another.	tangible asset-based) company, is acutely aware that the intrinsic values
		The Board and Management	of its intangibles have not (for the many past years) and are not
		have done an extremely poor job	meaningfully reflected in the trading prices of the shares of the Company.
		in avoiding such stress. How	The Board believes the poor showing of the share price performance of
		could the Board have sanctioned	the Company was due largely to:
		a rights issue without
		underwriting? Such episodes	1. the market's inability to better comprehend the complex economic
		consume management time and	potentials availed by the relatively technologically advanced
		create much uncertainty for	intangibles developed by the Group; and
		investors who believe in you. The	2. the market's tilted weight on the short-termbottom-line performance
		Board should explore M&A	of the Group, which pre-necessitates the Group to undergo certain
		possibilities a lot more actively. I	gestation periods prior to the delivery of the bottom-line and, to
		believe the Company is worth a	certain extent, also hinges on the success of the Company's fund-
		lot more to someone who	raising efforts.
		understands its potential. Time is
		running out.	Amidst the challenging fund-raising environment faced by the Company
			aggravated by the Covid-19 pandemic situation then and in response to
			the past repeated requests by the Shareholders for participation in the
			Company's fund-raising efforts, the rights issue was eventually carried
			out by the Company on a non-underwritten basis. The Board shares the
			sentiments that the Group is worth a lot more had its unearthed
			potentials been better understood and appreciated by the market. In this
			regard, the Company continues with its lookout for possible new avenues

2

RESPONSE TO QUESTIONS ON THE COMPANY'S ANNUAL REPORT

FOR THE FINANCIAL YEAR ENDED 31 MARCH 2021

S/N	Enquirer	Question	The Company's Response on 27 September 2021
			and discussions with possible interested partners to unlock the potentials
			of the Group in enhancing the Shareholders' value, including but not
			limited to exploring potential new businesses, joint ventures, mergers,
			acquisitions, purchase or sale of assets. The Company would like to
			highlight that the said ongoing discussions are at various preliminary
			stages of negotiation, and there is no certainty that the Company will
			eventually proceed with one or more of them. More details about any of
			such potential ventures will be announced by the Company as and when
			there is any material development concerning which.
		2. At the appropriate time, the	The Board had considered the consolidation of the shares of the
		Company should consider share	Company. It had decided against it after learning that many of the
		consolidation. Given the current	companies listed on the Singapore Exchange Securities Trading Limited
		share price, the bid-offer spread	("SGX-ST") which had carried out such a share consolidation exercise had
		results in high transaction costs	saw a significant amount of their respective market capitalizations
		for investors. I would suggest	'evaporated away' over time for no apparent fundamental reason.
		100 to 1 consolidation.
2	Lee Chong	1. Pg 106 of Annual Report, has	The said convertible loan note will be redeemed from the S$8.5 million
	Meng, a	convertible loan note 1 which	loan proceeds as mentioned in Note 43 on page 134 of the Company's
	Shareholder	matured on 6 Sept 2021 been	annual report for the financial year ended 31 March 2021 (the "2021
		redeemed?	Annual Report").

3

RESPONSE TO QUESTIONS ON THE COMPANY'S ANNUAL REPORT

FOR THE FINANCIAL YEAR ENDED 31 MARCH 2021

S/N	Enquirer	Question	The Company's Response on 27 September 2021
		2. How do Addvalue intend to use	Proceeds from the S$8.5 million loan will be utilised to repay certain
		the $8.5 million loan (pg 134)?	loans of the Group and for business expansion purposes.
		3. Will Addvalue consider providing	The Company will provide periodic updates on the financials of the Group
		a quarterly update of your	in accordance with the applicable regulatory requirements, including
		balance sheet, especially	those prescribed by the listing manual of the SGX-ST (the "Listing
		pertaining to debt and cash?	Manual").
		4. When will this incessant raising	The Company is currently in discussion with potential investors for an
		of new debt to pay off old debt	equity funding to reduce the gearing of the Group and for business
		end?	expansion. Such discussions are at various stages of negotiation, and
			there can be no assurance of their eventual realization.
3	David Gerald	1. In the operations review, the
	(SIAS), a non-	company highlighted the
	Shareholder	operational milestones in
		different areas, which include
		(pages 12 to 15 of the annual
		report):
		• Inter-satellite Data Relay
		System (IDRS)
		• Reconfigurable Embedded
		Systems (RES)

4

RESPONSE TO QUESTIONS ON THE COMPANY'S ANNUAL REPORT

FOR THE FINANCIAL YEAR ENDED 31 MARCH 2021

S/N	Enquirer	Question	The Company's Response on 27 September 2021

• Integrated Products and Services (IPS)
• Design services

In spite of the operational milestones, revenue for the group decreased from US$9.6 million in FY2020 to US$2.68 million in FY2021. Loss for the year was US$(6.18) million while accumulated losses have increased to US$(75.1) million (page 56 - Statements of financial position).

As at 31 March 2021, the group had cash and cash equivalent of US$274,099. The independent auditors have included a material uncertainty related to going concern in their report on the audit of financial statements for the financial year ended 31 March 2021 (page 48). As noted

5