8I HOLDINGS LTD — Capital/Financing Update 2016

Jan 20, 2016

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ASX ANNOUNCEMENT / MEDIA RELEASE

For Immediate Release

8I Holdings Limited (ASX: 8IH)

PROPOSED SPIN-OUT AND LISTING OF EDUCATION AND PROPERTY ASSETS

21 January 2016 Singapore

HIGHLIGHTS

• Education and Property assets/businesses to be spun-out and proposed to be separately listed

• 8I Holdings Limited to retain significant holdings in divested Education business segment

8I Holdings Limited (ASX:8IH) ("8IH" or the "Company") is pleased to announce that, in seeking to enhance the continued growth of its various business segments and promote shareholder value, it is planning to undertake a corporate restructuring to effect the spin-out of its:

1. wholly owned subsidiary, 8 Education Pte Ltd and its subsidiaries (“8EDU Group”), being the entities that operate the Company's education business; and

2. its associated company, Velocity Holding Pty Ltd and its subsidiaries (“Velocity Group”), being the entities that operate a boutique property development business throughout south-east Queensland.

As part of the corporate restructure, the Company will endeavour to IPO and list:

1. 8EDU Group on a reputable international stock exchange. The particular exchange is yet to be determined with various exchanges being considered; and

2. Velocity Group on the ASX.

The corporate restructure proposal is at an early stage, with the particulars of the spin-outs and proposed listings still currently being determined, however at this stage the Company anticipates that it will retain a significant equity interest in 8EDU Group (post listing and associated capital raising) and

Goldbell Towers, 47 Scotts Road, #03-03/04, Singapore 228233 | t +65 6225 8480 | f +65 6235 0332

expects to advise further details of the respective corporate restructuring by the end of Quarter 2 of 2016.

The corporate restructure will be subject to the necessary regulatory approvals (including, but not limited to, those under the ASX Listing Rules) and shareholder approval (as required).

Executive Chairman Ken Chee commented:

“In the midst of the current market uncertainty and volatility, 8IH continues to stay focused on the fundamentals and remains committed towards enhancing and maximising our shareholders’ value. The proposed transactions are part of the wider growth strategy to build on the successful period of growth since listing”

Background of 8EDU Group and Rationale for Partial Divestment

8EDU Group owns and operates the education business, event organisation business and assets in the Company's “Education and Event Segment”. The Company has an intention to raise funds to finance the education business expansion in Asia, particularly in China, to be effected through the proposed acquisition of complementary businesses in various cities of China. The Company considers that:

1. a speedy expansion into China's major cities, via acquisitions of complementary businesses and building up of the operations, is necessary to help this business establish a strong position in China; and

2. this expansion is best achieved via a separate listed entity.

As detailed above, 8IH intends to retain a significant equity interest in the 8EDU Group (to be determined) and the board of 8IH considers that the spin-out of this business line will enhance the Company's financial position and prospects, whilst enabling the key management personnel of the Company to primarily focus on the Company's expanding listed securities and private equity business segments. 8IH has no intention to spin off its event organisation business at this stage and will transfer it to another wholly owned subsidiary before the listing of 8EDU Group.

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Value Investing Summit 2015

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Millionaire Investor Program

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Background of Velocity Group and Rationale for Divestment

Velocity Group is a vibrant, young boutique property developer that specialises in cosmopolitan developments throughout south-east Queensland, Australia and is currently developing five property sites in Brisbane suburbs of Red Hill and Bulimba. Two of the developments, Arbor on Oxford and Fusion 462, are expected to complete in first quarter of 2016.

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Concept Drawing - Arbor on Oxford (Bulimba, Brisbane)

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Concept Drawing - Fusion 462 (Bulimba, Brisbane)

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Concept Drawing - Vue at Red Hill (Brisbane)

The funds raised through Velocity Group's proposed listing is intended to be used to finance its expanding property development business in Australia and to reduce its finance costs by strengthening its financial position.

The proposed spin-out and listing of the Velocity Group conforms with 8IH's model of unlocking and expanding asset and shareholder value by identifying promising companies and developing them from early/start-up stage to exit stage (as evidenced in the recent initial public offering and ASX listing of its associated company, Digimatic Group Limited).

Further Information

The Company intends to apply to ASX for a determination as to the application of Listing Rules 11.1.2, 11.1.3 and 11.4 in respect to the proposals detailed above. The Company will obtain shareholder approval for the proposed spin-outs if required by the Listing Rules.

Shareholders and potential investors of the Company should be aware that there is no assurance that the proposals detailed above will be implemented or when such measures may take place. Accordingly, shareholders and potential investors of the Company are advised to exercise caution when making investments decisions in respect to the shares of the Company.

Further information and announcement(s) regarding the corporate restructure proposals will be made by 8IH in due course.

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ENDS

For further information, please visit www.8iholdings.com

Media enquiries:

Zane Lewis Goh Yi Lin Australian Company Secretary Investor Relations 8I Holdings Ltd 8I Holdings Ltd +61 8 6555 2950 / +61 400 007 900 +65 6225 8480 zane@8iholdings.com info@8iholdings.com

About 8I Holdings Limited

8I Holdings is the holding company of the 8I Group that is based in Singapore and operates an investment business in listed securities, real property developments, and a financial education and training seminar business. Our experiences as a financial education company focusing on investment techniques with “Value Investing” through our flagship “Millionaire Investor Program” has facilitated significant growth and established 8I Group as one of the leading financial education seminar operators with an investment business in Singapore.

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