PROPOSED PRIVATE PLACEMENT

On behalf of ManagePay, we set out below the additional information regarding the Proposed Private Placement as requested by Bursa Malaysia Securities Berhad for public release:

• The e-Money Project (as defined in the announcement dated 7 February 2014 means the development of technology of the e-Money systems) is expected to commence in the first (1st) quarter of calendar year 2014 for a period of twenty-four (24) months. The estimated total costs of development pertaining to the e-Money Project is approximately RM5.711 million as illustrated under the Minimum Scenario as disclosed in the announcement. Nevertheless, the Board has taken into consideration that should there be any excess of proceeds to be raised from the Proposed Private Placement as in the case under the Maximum Scenario as disclosed in the announcement, such amount of proceeds will be apportioned accordingly to capital expenditure and other operating expenses in relation to the e-Money Project. Apart from the proceeds to be raised from the Proposed Private Placement, the Company intends to fund the e-Money Project via bank borrowings and/ or internally generated funds as an alternative source of funds.
• The breakdown of each components of other operating expenses such as staff salaries, data centre hosting services and office rental and utilities in relation to the e-Money Project is not determinable at this juncture.
• The ManagePay Group will be able to derive income from the e-Money Project mainly from charging of hosting fees for its provision of e-Money systems developed by the Group, software customisation services fees, and commission and transaction fees for transactions involving the use of its e-Money systems.
• The ManagePay Group intends to provide its services and e-Money system to potential issuers of e-Money, which will mainly be business entities which intend to conduct electronic sales transactions (i.e. no requirement for exchange of cash) which may come in the form of gift cards and cash cards.