VECTION TECHNOLOGIES LTD — Capital/Financing Update 2019

Jul 15, 2019

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ASX RELEASE

Volvo Car Italy targets higher sales with Vection AR software

Significant contract for AR deployment on Volvo Car Italy’s car dealerships generating up to A$430,000[1] in revenues to Vection.

Highlights:

• AR hardware and software revenue generative agreements signed with Volvo Car Italy.

• Agreement will result in revenues of up to A$430,000[1] .

• Volvo Car Italy to distribute Vection’s AR software across 63 car dealerships.

• Volvo’s XC40 Occupant Protection and Safety Equipment showcased by Vection.

• Second project under the Framework Agreement with Volvo Car Italy.

16 July 2019 | Perth, Australia

ServTech Global Holdings Ltd ( ServTech or the Company ) ( ASX:SVT ), a multinational software company that creates Virtual Reality ( VR ) and Augmented Reality ( AR ) solutions across multiple sectors, is pleased to announce that its wholly owned subsidiary Vection Italy S.r.l. ( Vection ) has signed a revenue generative AR Product and Software Agreement ( Agreement ) with global luxury automotive manufacturer Volvo Car Italia Spa ( Volvo Car Italy ).

The Agreement will generate near term revenues from development and hardware, and additional revenues over the following 2 years in subscriptions fees based on full adoption by Volvo Car Italy’s Italian car dealership network, totalling up to A$430,000[1] .

The Agreement follows on from Vection signing an overarching framework agreement with Volvo Car Italy (ASX, 6 May 2019), under which Volvo Car Italy is evaluating the implementation of VR and AR solutions across its business verticals. This project is targeted at Volvo Car Italy’s marketing & sales endeavours.

1 Reserve Bank of Australia Exchange Rate as at 15 July 2019 AUD/€ 0.6239

Adoption of Vection’s AR Vehicle Demonstration Software

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Under the Agreement, Volvo Car Italy will distribute the AR hardware products together with Vection’s proprietary AR Vehicle Demonstration solutions initially across 63 car dealerships. Each dealership will enter into a subscription based technical support and licensing agreement for the utilisation of the AR software solution.

Volvo Car Italy aims to enhance the purchase experience within its dealerships, engaging and educating prospective customers’ on Volvo Car Italy’s mission to put people first and make every car safer for everyone.

Vection’s AR software unlocks a truly unique and engaging purchase experience , enhancing sales and encouraging conversion, while educating consumers on the top-class technical features of the vehicles.

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Figure: Volvo XC40

AR Product and Volvo XC40 AR Software

Under the Product and AR Software agreements with Volvo Car Italy, Vection will provide Volvo Car Italy with the required AR hardware for the provision of the AR sales and marketing solutions, in addition to the development of a customised AR software for model XC40.

The XC40 AR marketing solution will showcase the vehicle’s hybrid electrical technology, and occupant protection and safety equipment, such as the car safety cells and airbags systems: www.volvocars.com/cy/why-volvo/human-innovation/future-of-driving/safety/intellisafe-standard.

The AR marketing solution will maximise exposure on first-class safety features thanks to Vection’s AR based marketing solutions.

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Chiara Angeli, Sales & Marketing Director of Volvo Car Italy, commented:

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“Volvo Car Italy is focused on ensuring a unique and engaging purchase experience for its customers. Vection’s AR technology is the ideal solution for our car dealerships to showcase our vehicles first-class safety features and our overarching mission to put people first and make every car safer for everyone.”

Gianmarco Biagi, Managing Director of ServTech, commented:

“The Volvo Car Italy framework agreement has been a pivotal step for the Company to engage in significant contracts such as this one, which enables the distribution of our AR software solutions to an initial subset of 63 Volvo Car Italy car dealerships. The automotive industry represents the initial target market under the Company’s overarching global commercialisation strategy, and this agreement is pivotal in affirming ServTech as a global VR & AR software company.”

For more information: Media enquiries:

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Bert Mondello MMR Corporate Services Non-Executive Chairman Henry Kinstlinger +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) & Augmented Reality (AR) software services for the engineering, manufacturing, architecture, construction & 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

About Volvo Car Group:

Volvo has been in operation since 1927. Today, Volvo Cars is one of the most well-known and respected car brands in the world with sales of 642,253 cars in 2018 in about 100 countries. Volvo Cars has been under the ownership of the Zhejiang Geely Holding (Geely Holding) of China since 2010. It formed part of the Swedish Volvo Group until 1999, when the company was bought by Ford Motor Company of the US. In 2010, Volvo Cars was acquired by Geely Holding.

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