CORDLIFE TO ACQUIRE 19.92% INTEREST IN MALAYSIA LISTED CORD BLOOD BANKING SERVICE PROVIDER STEMLIFE BERHAD

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1 PRESS RELEASE CORDLIFE TO ACQUIRE 19.92% INTEREST IN MALAYSIA LISTED CORD BLOOD BANKING SERVICE PROVIDER STEMLIFE BERHAD - Acquisition of a 19.92% interest for an aggregate consideration of RM29.58 million to expand overseas operations - Transaction to enlarge the Group s geographical footprint in Asia and extend the Group s reach of complementary services such as umbilical cord tissue banking - Diversifying to a multi-product healthcare company catering to the mother and child segment Singapore, 4 September 2013 Cordlife Group Limited ( Cordlife, and together with its subsidiaries, the Group ), a multi-product healthcare company catering to the mother and child segment, announced that it has entered into a conditional sale and purchase agreement with certain vendors to acquire a 19.92% interest in StemLife Berhad ( StemLife ), a company listed on Bursa Malaysia for an aggregate consideration of RM29.58 million ( Acquisition ). The aggregate consideration for the Acquisition will, unless elected by Cordlife to pay fully in cash, be satisfied via the issuance of 8 million new ordinary shares in Cordlife ( Consideration Shares ) at an issue price of S$1.30 for each Consideration Share and cash payment of RM2.85 million. Mr Jeremy Yee, Executive Director and Chief Executive Officer of Cordlife said, As amongst the market leaders in Singapore, Indonesia, Philippines, Hong Kong and India, we believe that the proposed transaction presents Cordlife with the opportunity to further cement its leading position in Asia, and particularly the ASEAN region. Through the stake in StemLife, Cordlife is now well-positioned to capitalise on the tremendous growth opportunities in Malaysia driven by rising affluence and greater health awareness. With this Acquisition, the Group will also be able to capitalise on economies of scale and scope in all its service/product offerings in Malaysia and potentially work with StemLife to offer its The initial public offering of Cordlife s shares was sponsored by PrimePartners Corporate Finance Pte. Ltd., who assumes no responsibility for the contents of this release. Page 1 of 6

2 servicess and products to the Group's existing markets. In addition, the Group will be able to further enhance revenue and cost synergies. About StemLife StemLife is the first stem cell banking and therapeutics company in Malaysia. Incorporated in 2001, StemLifee is currently listed on the ACE Market (previouslyy known as the Malaysian Exchange of Securities Dealing and Automated Quotation) of Bursa Malaysia. As of 2008, StemLife is a fully licensedd cord blood banking facility withh the Ministry of Health Malaysia and is the first cord blood banking company in Malaysia to provide umbilical cord blood-derived stem cellss for bone marrow transplantation in paediatric leukemia and adult stem cells for use inn treatment of blood-related disorders, foot ulcers and sports and trauma injuries. StemLifee offers stem cell banking services for immediate or future use to expecting parents who wish to store their baby's umbilical cord blood, and to individuals who wish to store their own adult stem cells. In addition, StemLife provides stem cell consultancy and therapeutic services and works closely with medical specialists to provide cost-efficient and personalise d treatment. Current stem s cell therapies available at StemLife are applications in oncology, haematology and diabetic foot ulcers. StemLife operates its own 24-hour processing, testing, and cryopreserva ation facilityy in central Kuala Lumpur, Malaysia. Economies of Scale With the completion of the acquisitionn of Australian Securities Exchange-listed Life Corporation Limited (formerly known ass Cordlife Limited) ( CBB )'s cordd blood and cord tissue banking businesses and assets inn India, the Philippines, Hong Kong and Indonesia in June 2013, the Acquisition will enable Cordlife to further enlarge its geographical footprint in Asia, and is in line with the Group s intentions, as stated in its listing prospectus, to expand its business operations overseas. Page 2 of 6

3 In addition to expanding the Group s geographical footprint as part horizontal growth plans, Cordlife is also focused on growingg vertically scope of products and services to both mother and child. of the Group s in terms of the Economies of Scope In March 2011, the Group launched umbilical cord tissue banking servicee in Hong Kong, offering an additional service that allows customers to collect and store their child's umbilical cord tissue. In May 2013, Cordlife Technologies Pte Ltd, a wholly-owned subsidiary of Cordlife Group, launched umbilical cord tissue banking service in Singapore. The storage and banking of umbilical cord tissue servicess provided in Singapore is currently not licensed by the Ministryy of Health, Singapore and is provided on a research/clinical trial basis. In August 2013, the Group officially launched its newest service, umbilical cord tissue bankingg in the Philippines, through Cordlife Medical Philippines, Inc., a wholly-owned subsidiary of the Group. The Acquisition is expected to extend the Group s reach for complementary services/ products such as umbilical cord tissue banking to new countries such as Malaysiaa and Thailand. As the ASEAN region becomes increasingly aware of o the benefits of stem cells storage for their children, umbilical cord tissue banking is a natural extension of parents consideration for better healthcare options for their children. Mr Yee continued: We are looking to tap into the growth storyy of emerging Asian nations and expand our geographical footprint in Asia as part of ourr horizontal growth plans to derive economies of scale. In terms of our vertical growth, Cordlife is alsoo diversifying into a multi-producproviding cord blood and tissue banking services, Cordlife is looking to provide other healthcare company catering to the mother & child c segment. In addition to complementary products and services catering to the motherr and child segment, which will seee us benefit from economies of scope. Valuation and Financial Impact The aggregate consideration of RM29.58 million for the Acquisition wass arrived att after negotiation on an arm's length basis andd on a willing-buyer willing-seller basis taking into Page 3 of 6

4 account, amongst other factors, the aggregate net tangible approximately RM33.8 million as at 30 June asset valuee of StemLife of Based on the unaudited condensed consolidated financial statements s of the StemLife group for the second quarter and half year ended 30 June 2013 ass announced by StemLife on 26 August 2013, StemLifee has a cash balancee of RM72.77 million and a deferredd income from operations of RM57.06 million. StemLife generated cash from operating activities of RM4.32 million for the half year ended 300 June The Acquisition is not expected to have any material effect on the consolidated net tangible assets and earnings per share of the Group for the financial yearr ending 30 June For more information on the Acquisition, shareholders of Cordlife may refer to the announcement made by Cordlife on 4 September 2013 and released on the SGXNET. - The End - Page 4 of 6

5 ABOUT CORDLIFE GROUP LIMITED (Bloomberg stock code: CLGL) Incorporated in May 2001, Cordlife Group Limited ( Cordlife, and together with its subsidiaries, the Group ), is a multi-product healthcare company catering to the mother and child segment and a leading cord blood and tissue banking services provider. Amongst the first private cord blood banks in Asia, Cordlife has h established a dominant market leader position in Singapore 1. Today, it has the larger market m share of the only two private cord blood banks in Singapore.. In Hong Kong, it is amongst the three market leaders for private cord blood banks. Cordlife completed the acquisition a of the cord blood and cord tissue banking businesses and assets in India, thee Philippines and Indonesia from CBB in June Cordlife collects, processes, tests, t cryopreserves and stores stem cells from the umbilical cord blood of the child at birth, allowingg customers to preserve their child s cord blood stem cells for treatment later in his or her life if their child so equires. In March 2011, the Group launched umbilical cord tissue banking service in Hong Kong, offering an additional service that allows customerss to collect and store their child's umbilical cord tissue, which is a rich source of mesenchymal and epithelial stem cells and may potentially help repair the body in different ways. In May 2013, Cordlife Technologie es Pte Ltd, a wholly-owned subsidiary of Cordlife Group Limited, launched umbilical cordd tissue banking service in Singapore. The storage and banking of umbilical cord tissue services provided in Singapore is currently not licensed by the Ministry of Health, Singapore. This service is provided on a research/clinical trial basis. Cordlife s business model, which allows customers to opt for a one-time lump sum payment, or annual payments until the child reaches maturity (21 years old in Singapore and 18 years old in Hong Kong), provides the Group with a stable pool of recurring cash flow. In addition, Cordlife, throughh its collaborative relationships or o arrangements with major private hospitals and clinics such as Thomson Medical and Parkway P East Hospital, has continued to increase public awarenesss of its cord blood banking services in Singapore. Overseas, the Group has a 10% direct t stake in China Cord Blood Corporation a top 1 Source : Deloitte & Touche Financial Advisory Services Limited report, 10 April 2013 Page 5 of 6

6 operator in China holding majority shares in the Beijing, Guangdong and Zhejiang Blood Banks, and an approximately 20% share in Shandong Cord Blood Bank. Cord Cordlife has been accreditedd since 2005 by AABB (formerly known as the American Association of Blood Banks), an association involved in the field of transfusion medicine and cellular therapies. The Group is onee of the first private cord blood banks in Singapore and amongst the first in Hong Kong to have released cord blood units forr transplants and other therapeutic use. In Singapore, Cordlife was the first private p cordd blood bank to releasee cord blood units for the treatment of cerebral palsy. Cordlife s track record has won the Group many accolades and a awards, including: : Best Medical Service Award 2010 by Capital CEO Supreme Brand Awards; A Topp Pregnant/ /Baby Products Award 2011 by Pregnancy Magazine; Outstanding Financial Strength Cord Blood Bank by Quamnet Outstanding Enterprise Awards; Mostt Popular Brand Award 2010 The Most Popular Cord Blood Bank by TVB Weekly; and U-Choice Lifestyle Brand Award 2010 by Metroinfo FM In October 2012, Cordlife was awarded the prestigious SIAS Investors Choice Awards as runner-up in the Most Transparent Company Award 2012 New Issues Category. ISSUED ON BEHALF OF BY CONTACT OFFICE Cordlife Group Limited : Financial PR Pte Ltd 4 Robinson Road #04-01 Thee House of Eden Singapore : Mr Gabriel Tan / Mr Kamal Samuel : : gabriel@financialpr.com.sgg / kamal@financialpr.com.sgg 2 Awarded to Cordlife Hong Kong Page 6 of 6