General Announcement::CESSATION OF A SUBSIDIARY COMPANY - ALCA VSTYLE SDN. BHD.

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VERSALINK HOLDINGS LIMITED (Company Registration No. 201411394N)

(Incorporated in the Republic of Singapore on 21 April 2014)

CESSATION OF A SUBSIDIARY COMPANY - ALCA VSTYLE SDN. BHD.

The Board of Directors (the "Board") of Versalink Holdings Limited (the "Company" and together with its subsidiaries, the "Group") wishes to announce that, Alca Vstyle Sdn Bhd ("Alca Vstyle") has ceased to become a subsidiary of the Company following the Company's disposal of 170,000 ordinary shares in the capital of Alca Vstyle for a cash consideration of RM170,000 (the "Disposal") to Stylam Industries Limited, a public listed company in India on 22 November 2019.

Following the Disposal, the Group's shareholding interest in Alca Vstyle has reduced from 51% to 34%. Alca Vstyle is not a principal subsidiary (as defined under the Singapore Exchange Securities Trading Limited Listing Manual Section B: Rules of Catalist) of the Company.

The consideration was derived based on the initial capital investment and on a willing buyer and willing seller basis.

Based on the unaudited consolidated financial statements of Alca Vstyle for the financial period ended 31 August 2019, the net book value and net tangible liability value attributable to the disposed shares is RM1,616,000. No valuation was carried out for Alca Vstyle in connection with the Disposal.

The transaction is not expected to have a material impact on the consolidated net tangible assets per share and earning per share of the Company for the current financial year.

None of the Directors or controlling shareholders of the Company has any interest in the transaction.

BY ORDER OF THE BOARD

Arica Walters

Executive Director

VERSALINK HOLDINGS LIMITED

Date: 4 December 2019

This announcement has been reviewed by the Company's sponsor, CIMB Bank Berhad, Singapore Branch ("Sponsor") in accordance with Rule 226(2)(b) of the Catalist Rules. This announcement has not been examined or approved by the SGX-ST and the SGX-ST assumes no responsibility for the contents of this announcement, including the correctness of any of the statements or opinions made or reports contained in this announcement. The contact person for the Sponsor is Mr Yee Chia Hsing, Head, Catalist, CIMB Bank Berhad, Singapore Branch, at 50 Raffles Place, #09-01 Singapore Land Tower, Singapore 048623, Telephone: [phone].