The board of directors of Microware Group Limited (Company) announce that, in order to facilitate the strategic planning for artificial intelligence (AI) development in the People's Republic of China (PRC) market, two wholly-owned subsidiaries, namely Microware (Shanghai) AI Technology Ltd. (Microware AI) and Microware (Shanghai) Technology Development Ltd. (Microware Technology) (both are temporarily named and subject to the final approval of the regulatory authority and the registration authority for industry and commerce), will be established in Shanghai, the PRC, in May 2024, with a registered capital of RMB 60 million and RMB 10 million respectively. In addition, the Board has authorized the management to handle the administrative procedures for industry and commerce and all other related matters regarding the establishment of Microware AI and Microware Technology. Both Microware AI and Microware Technology will be direct wholly-owned subsidiaries of the Company, which is committed to the business of technology research and development ("R&D") of AI infrastructure.

These subsidiaries will be established in May 2024. In the meantime, the Group will actively engage in: Investment in technology innovation and R&D: the Group will invest in the R&D and practical application of AI infrastructure and seek technology innovation to maintain its leading position in the information technology infrastructure solutions industry and will continue to introduce more competitive products and services. Market expansion and collaboration: while deepening its presence in existing markets, it will actively tap into new market segments and establish strategic collaboration with more partners to advance the broad application of AI infrastructure across different industries.

Talent cultivation and team building: the Group attaches great importance to the cultivation an development of talent. It will continue to attract the industry's top talents, enhance its team building and develop a talent pool for the fast-growing field of generative AI. Strategic investments and mergers and acquisitions: to accelerate its business growth, the Group will seek opportunities for potential strategic investments and mergers and acquisitions.

The Group will consolidate high-quality resources, and further cement and strengthen its position in the AI infrastructure sector to actively seize the market opportunities brought by AI. Social responsibility and sustainable development: the Group will actively fulfil its social responsibility by paying attention to environmental protection and sustainable development and will strive to make positive contributions to society and the environment. The Group is confident about the continuous development of the PRC market and will spare no effort to create sustainable value for shareholders and investors.