Placements::PROPOSED PLACEMENT OF 66,530,000 NEW ORDINARY SHARES AT AN ISSUE PRICE OF S$0.0495 FOR EACH SHARE

(Incorporated in the Republic of Singapore)

(Company Registration No.: 198804700N)

MCE to raise S$3.293 million through share placement to fuel

growth of its Healthcare and E-Commerce businesses

• Share placement of 66.53 million new shares at S$0.0495 per share to a group of 15 investors including investors with healthcare industry background
• Placement shares represent 13.2% of the enlarged share capital of MCE
• Placement monies to support MCE expansion into healthcare and e-commerce businesses with further platform investments, boost Medtel's distribution and regional growth in new markets

Singapore, 18 November 2021 - Catalist-listed Metal Component Engineering Limited ("MCE" or the "Company") is pleased to announce that the Company has entered into a conditional placement agreement ("Placement Agreement") with 15 investors on 16 November 2021, to allot and issue an aggregate of 66.53 million new ordinary shares in the capital of MCE ("Placement Shares"). The Placement Shares are to be issued at S$0.0495 each, representing a discount of approximately 9.5% to the volume-weighted average price of S$0.0547 based on the trades done on the preceding market day (being, 15 November 2021) up to the time of signing of the Placement Agreement on 16 November 2021. The Placement Shares represent 13.2% of the enlarged share capital of the Company upon completion of the placement. Through this placement, MCE aims to raise S$3.293 million in gross proceeds to further propel the growth of its Healthcare and E-commerce businesses.

Since the change of business focus, MCE has progressed reasonably well in its direction to create a digital healthcare ecosystem. Recently, MCE (through its wholly-owned subsidiary, 5Digital Pte Ltd) entered into a conditional sale and purchase agreement relating to an investment in PT Gaido Digital Medika on 14 October 2021, to create specific opportunities in the West Java region where its JV partner, the Gaido group is well entrenched. This will accelerate the Company's smart hospital and ePharmacy initiatives into the Indonesian healthcare market. On 29 October 2021, the Company (through its wholly-owned subsidiary, 5Digital Pte Ltd) also entered into a share subscription agreement relating to an investment in MedTel Healthcare Private Limited ("MedTel"), to provide a valued addition to MCE's healthcare plans.

Chief Investment Officer of MCE, Mr Ahillan Pupalasingam, said: "We are grateful to the new group of investors who believe in our growth story and coming onboard through their investments. MCE has progressed well to realise its vision of creating an integrated digital healthcare platform and we want to further leverage on our assets to be well placed in South East Asia. We are delighted at the vote of

(Incorporated in the Republic of Singapore)

(Company Registration No.: 198804700N)

confidence from the incoming investors including those with healthcare industry backgrounds, such as Dr Lim Cheok Peng, the well-regarded former CEO of Parkway Holdings Limited and Managing Director of IHH Healthcare Berhad.

The funds raised will support Gainhealth's ePharmacy expansion, further deployment of MedTel smart devices to healthcare providers and initiatives into new businesses such as clinical nutrition via our recently incorporated Gain Foods Pte Ltd. All further new investments will be synergistic to our current assets with the intention to maximise shareholder value. We are also looking at opportunities to replicate our model in new markets like Philippines and Vietnam as well.

The team are also excited that we will soon be implementing our integrated smart hospital and IoMT devices solutions in Indonesia via our recent strategic investment into PT Gaido Digital Medika and a partnership with a telecom service provider.

We firmly believe that our recent investments and existing framework of assets will drive us forward in realising our vision of a digital healthcare ecosystem in South East Asia whilst prioritising our shareholders interest."

This proposed placement is subject to certain conditions pursuant to the Placement Agreement. As at the date of this announcement, there is no certainty or assurance that the placement will be completed or that no changes will be made to the terms thereof. MCE will make the necessary announcements when there are further developments. Thus, shareholders and potential investors are advised to exercise caution in trading of MCE's shares.

- End -

For media/ investor enquiries, please contact:

Romil Singh

Financial PR

HP: [phone]

Email: [e-mail]

Jass Lim

Financial PR

HP: [phone]

Email: [e-mail]

(Incorporated in the Republic of Singapore)

(Company Registration No.: 198804700N)

About Metal Component Engineering

Metal Component Engineering (MCE) was founded in 1987 in Singapore. With consistent focus on quality and engineering innovation, the company has expanded its customer base by serving MNC (Multi-National- Corporation), EMS (Electronic Manufacturing Services), and SME (Small-Medium-Enterprise) globally. MCE has recently announced diversification into healthcare technology and services with investment into GainHealth Pte Ltd, a direct-to-consumer and high-growth omnichannel health and wellness platform. The company is vertically integrated with licenced clinics with pharmacy, online self-brandede-commerce portals, and product placements on regional e-commerce portals.

For more information, visit www.mce.com.sg, www.5digital.com.sgand www.gainhealth.life

This press release has been prepared by Metal Component Engineering Limited ("Company") and its contents have been reviewed by the Company's sponsor, ZICO Capital Pte. Ltd. ("Sponsor"), in accordance with Rule 226(2)(b) of the Singapore Exchange Securities Trading Limited ("SGX-ST") Listing Manual Section B: Rules of Catalist ("Catalist Rules").

This press release has not been examined or approved by the SGX-ST and the SGX-ST assumes no responsibility for the contents of this press release, including the correctness of any of the statements or opinions made or reports contained in this press release.

The contact person for the Sponsor is Ms Alice Ng, Director of Continuing Sponsorship, ZICO Capital Pte. Ltd., at 8 Robinson Road #09-00 ASO Building, Singapore 048544, telephone [phone].