For consistency purposes, the abbreviations and definitions used throughout this announcement shall have the same meanings as those previously defined in the Company’s announcements dated 14 April 2020 and 13 November 2020.

Further to the Company’s announcement made on 14 April 2020 and 13 November 2020, the Board of Directors of mTouche Technology Berhad (“MTOUCHE” or the “Company”) wishes to inform that mTouche International Sdn. Bhd. (“MISB”), a wholly owned subsidiary of the Company, had on 19 November 2020 entered into a Digital Distribution Agreement (the “Agreement”) with Mlabs Research Sdn. Bhd. (“Mlabs Research”), to promote, market, and distribute Novel Coronavirus (SAR-CoV-2) RP-PCR Detection and Diagnostic kit and Novel Coronavirus (SAR-CoV-2) lgM/lgG Rapid Test Kit, and other equivalent products in Malaysia through Mlabs digital distribution channel.

Mlabs Research is a wholly owned subsidiary of Mlabs Systems Berhad which the group is engaged in the investment holding, research and development in web conferencing and related products, provision of mobile application solution, online trading of white goods, film productions, and advisory services on digital assets and fintech investment.

The Agreement is to a period of one (1) year, commencing on and from 19 November 2020, unless otherwise mutually extended or terminated. Either party may terminate the Agreement upon delivery of written notice at least thirty (30) days prior to such termination.

The Agreement will not have any effects on the share capital and shareholding structure of the Company. However, it is expected to have positive contribution to the earnings and net assets of MTOUCHE Group.

Similar to all business entities, the risk factors affecting the execution of the Agreement, including but not limited to business risks such as prudent financial management, changes in political, economic and regulatory conditions. However, the Board will continue to exercise due care in considering the risks associated with the Agreement and will take appropriate measures in planning the successful execution of the Agreement.

The Agreement is not subject to the approval of the shareholders.

None of the Directors and/or other major shareholders of the Company and/or any persons connected to them have any interest, direct or indirect, in relation to the Agreement.

The Board, after due consideration, is of the opinion that the Agreement is in the best interest of the Group.

This announcement is dated 19 November 2020.