VECTION TECHNOLOGIES LTD — Capital/Financing Update 2019

Aug 4, 2019

==> picture [611 x 139] intentionally omitted <==

ASX RELEASE

ServTech Technology adopted by Furniture and Fashion Market Vection engaged for works generating revenue of ~$180k

5 August 2019 | Perth, Australia

ServTech Global Holdings Ltd (ASX:SVT) ( ServTech or the Company ), a multinational software company that makes Virtual Reality (VR) and Augmented Reality (AR) solutions, is pleased to announce that its wholly owned subsidiary, Vection has added ~$180,000 revenue to its software and technology development pipeline.

Highlights

• ~$180,000[1] in revenue has been added to Vection’s software development pipeline

• Majority of work relates to Vection’s “In-Store 3D/AR Configurator” software technology

• “In-Store Furniture Configurator” to be deployed across 100+ potential locations world-wide

• Vection’s new “In-Store Fashion Configurator” targets the fashion retail industry

• “ In-Store 3D/AR Configurator ” agreements aligned with Company’s SaaS global strategy

The bulk of this work relates to further development of Vection’s Proprietary “ In-Store 3D/AR Configurator ” platform. This established and modular platform is already commercially in use across a number of Vection clients’ showrooms worldwide.

In-Store Furniture Configurator

The In-Store Furniture Configurator has been commercialised to a limited number of iconic luxury brands to prove the commercial viability of the product, generating over ~$700,000 in revenue for Vection to date.

The In-Store Furniture Configurator is a powerful, end-to-end, virtual showroom developed by Vection. It is currently being used by multiple luxury brands across a subset of global showrooms, to:

• Provide ultra-realistic interactive furniture visualisation leveraging Vection’s proprietary real-time AR/3D technology

• Visualise furniture pieces in the real space leveraging Vection’s proprietary AR technology

• Ensure seamless adoption and vertical integration across multiple luxury brands’ distribution network and stores;

• Collect and analyse data across the brands’ network and customers

1 Reserve Bank of Australia exchange rate as at 2 August 2019 of AUD/€ 0.6148

The In-Store Furniture Configurator enables customers to customise products in real-time or to visualise physical furniture pieces not currently available in-store, resulting in faster purchasing decisions .

==> picture [342 x 278] intentionally omitted <==

Figure 1: Vection’s In-Store Furniture Configurator, available for PC, tablet and mobile.

Customers can visualise products in a virtual showroom, interacting in real-time with luxury furniture pieces improving the overall shopping experience and driving shopper engagement. A user could see a rendition of his new couch in his living room, in ultra-high definition.

The In-Store Furniture Configurator also automatically channels the orders processed through the software to the client’s enterprise resource planning (ERP), logistics and procurement systems.

==> picture [213 x 147] intentionally omitted <==

==> picture [218 x 147] intentionally omitted <==

Figure 2: Vection’s In-Store Furniture Configurator snapshots.

2

In-Store Fashion Configurator

During 2019, Vection collaborated with one of the highest selling luxury brands globally, developing a luxury handbag prototyping tool, enabling efficiencies across its development collaboration processes.

Following this continuing engagement, Vection is now in discussions for the deployment of an “In-Store Fashion Configurator”, which could potentially be deployed across its 200+ locations world-wide.

The In-Store Fashion Configurator will:

• Provide ultra-realistic interactive fashion items visualisation leveraging Vection’s proprietary realtime AR/3D technology

• Visualise fashion items in the real space leveraging Vection’s proprietary AR technology

• Ensure seamless adoption and vertical integration across and extensive network and stores (200+ stores world-wide)

• Collect and analyse data across the brand’s network and customers

• Function as an End-to-end ERP , logistics and procurement system integrated software .

In-Store 3D/AR Configurator

The software solution is based on Vection’s “In-Store 3D/AR Configurator” software technology, connecting key stakeholders world-wide in real-time, reducing costs and time-to-market.

Designers, marketeers and management can connect remotely to the platform, engaging in a collaborative decision-making process to define what iterations of its products will be commercialised to the target market.

Historically, luxury fashion manufacturers would produce multiple real-life samples of new products in order to visualise its possible iterations, in a time consuming, cost-inefficient process. With Vection’s software, a manufacturer can visualise its new-product line in real-time, optimising its decision-making processes on its products’ design aspects, such as colours, logos, materials and sizes.

The AR Technology and New Business Outlets

Vection’s “In-Store 3D/AR Configurator” software technology is a multi-product real-time software solution enabling brands and companies to engage with their clients in a more effective way, enabling the visualisation of products in the real world via AR.

Clients can see how a piece of furniture would fit into their home, or how a handbag would look on their arm, in ultra-high definition.

The Company is currently in discussions with multiple industry segments to roll-out the solution.

Gianmarco Biagi, Managing Director of ServTech, commented:

“The “In-Store 3D/AR Configurator” software technology is a complementary product to FrameS, providing for further client exposure and market reach. Vection has created an iconic augmented reality software utilised by luxury brands in the furniture market. ServTech is currently negotiating agreements to deploy the solution in additional industry verticals, including the fashion industry.”

3

For more information:

For media enquiries:

==> picture [12 x 12] intentionally omitted <==

==> picture [12 x 12] intentionally omitted <==

Bert Mondello

Bert Mondello MMR Corporate Services Non-Executive Chairman +61 8 6380 2555 +61 2 9251 7177 bmondello@regencycorporate.com.au media@mmrcorporate.com

About ServTech (ASX:SVT):

ServTech is a multinational software company that makes Virtual Reality (VR) and Augmented Reality (AR) software services for the engineering, manufacturing, architecture, construction and education industries. ServTech operates on an Enterprise business model based on bespoke fees and on a Software as a Service (SaaS) business model based on recurring subscription revenue.

www.servtechglobal.com.au

4