FATFISH GROUP LIMITED — M&A Activity 2014

Oct 16, 2014

==> picture [82 x 102] intentionally omitted <==

Fatfish Internet Group Ltd (ACN 004 080 460) Level 1, 47 Coppin Street Richmond VIC 3121 Australia www.fatfish.co

17 October 2014

ASX Updated Announcement

Fatfish investee company LoveOutLoud Asia acquired by Lunch Actually Group – Updated Announcement

Singapore online dating mobile app provider LoveOutLoud Asia Pte Ltd (LOLA), an investee company of the Fatfish Internet Group Limited (ASX:FFG), is to be acquired by one of Southeast Asia’s largest dating and matchmaking service providers, Lunch Actually Group.

The acquisition of LOLA will be satisfied entirely by scrip in Lunch Actually Group. Commercial terms have been agreed between the parties involved and remain confidential. Shareholders of LOLA will receive shares in the Lunch Actually Group.

The investment in LOLA was completed by Fatfish Medialab, a subsidiary of Fatfish Internet Group Ltd, in July 2014. This transaction will mark the first exit of investments by the entity. Fatfish Medialab administers the Singapore Government’s i.JAM funding scheme that supports entrepreneurs developing digital media products. Prior to the exit, Fatfish Medialab held an equity stake of 10% of the issued capital in LOLA. All material information has been disclosed and this transaction is not deemed to be material to the Company.

Launched in late 2013 LOLA offers a unique dating app that uses an extensive matching algorithm examining the facial profile, personality and cultural behaviour of users. It then searches the best potential matched date and transmits the information to each user via smartphone once per day at noon.

“LoveOutLoud Asia has experienced rapid growth in its short existence and Lunch Actually Group will provide a platform that will greatly expand the potential of the app,” said Fatfish Internet Group CEO Kin-Wai Lau.

“Given our confidence in the prospects of Lunch Actually Group we prefer the scrip-only transaction as Lunch Actually Group has high upside potential.”

To date, LOLA has provided 350,000 matches and successfully paired over 10,000 singles across Southeast Asia with a “one match daily” model. Moving forward the LOLA team will become fully integrated with Lunch Actually Group as it drives the digital expansion of the group throughout Asia.

Lunch Actually Group is a fast-expanding comprehensive dating service specialist with over one million clients across Southeast Asia and various business units that cover both the online and physical value chain of the dating industry. Its offices in Singapore, Kuala Lumpur and Hong Kong provide a safe, convenient and non-intimidating option for busy professionals to meet like-minded singles. Having recently expanded into their fourth market, Indonesia, the Lunch Actually Group has experienced 30%-50% revenue growth per year since 2012.

Violet Lim, CEO of Lunch Actually Group comments: “As a company that constantly innovates to meet the changing needs of singles, we have been on the lookout to collaborate with mobile dating apps. We are impressed by the LOLA founders' ability, high standards as well as their perseverance to build and scale an effective dating app with limited resources and budget. LOLA will certainly fit well in our company culture and we are looking forward to work closely with the team to continue to serve the needs of singles.”

For more information on LoveOutLoud Asia and Lunch Actually please visit: http://www.loveoutloud.asia/ http://www.lunchactuallygroup.com/

About Fatfish Internet Group

Fatfish Internet Group Ltd (‘FFG’) is a Southeast Asian and Australian based Internet venture accelerator. FFG partners with entrepreneurs to help them build and grow Internet businesses via a co-entrepreneurship model.

FFG’s co-entrepreneurship model provides a collection of resources and expertise at group level to startup companies. This model provides entrepreneurs with support in important areas such as business strategy, staffing, exit strategy and product development services.

By utilising this pragmatic model FFG becomes a strategic corporate partner that provides the funding, resources and invaluable networks to hasten the growth of promising technology businesses. FFG is actively involved from seed funding stage to exit stage.

Company History

FFG was founded in 2011 in Singapore at the famed “Block 71” startups cluster by a team of co-founders that are serial entrepreneurs. All have successful track records in the Internet industry. FFG has dual headquarters located in Singapore and Melbourne, Australia. FFG also operates 2 regional “launch-pad” offices in Malaysia and Indonesia.

FFG is publicly traded on the Australian Stock Exchange (ASX) with its trading symbol “FFG”. The Company listed in July 2014 and is the first Internet accelerator to be traded on the Exchange.

Glossary

Internet accelerator

An Internet accelerator is a company or facility designed to foster entrepreneurship and help startup Internet companies to grow through the use of shared resources, capital, management expertise, and intellectual capital.

Seed funding

Seed funding is capital required to get a new business started. Seed funding is usually done via investments in return for small stakes in promising companies.

Exit strategy

An exit strategy is method by which a venture capitalist intends to get out of an investment that he or she has made in the past. In other words, the exit strategy is a way of "cashing out" an investment or generating capital gains for shareholders.

Co-entrepreneurship

A co-entrepreneur is able to support entrepreneurs at every phase of their company's growth by being actively involved and providing multi-sector expertise.

For further question on this release, please contact:

Mr Kin-Wai Lau	Ms Daphne Teoh
Managing Director	Market and Communication
Fatfish Internet Group	Executive
lau@fatfish.co	Fatfish Internet Group
Singapore +65 93203588	daphne@fatfish.co
Australia +61 2 80051688	Malaysia +60 16 3141898

Media

Matthew Wright Monsoon Communications mattheww@monsoon.com.au +61 3 9620 3333