Jul 9, 2022

Buyer consortium led by Recco Control Technology Pte. Ltd. (“Recco Control Technology”) and Dazheng Group (Hong Kong) Investment Holdings Company Limited (“Dazheng Group”) announces today that UBS AG Hong Kong Branch[1] has been engaged by Recco Control Technology and Dazheng Group as the financial advisor in connection with the consortium’s proposed acquisition of Hollysys Automation Technologies Ltd. (NASDAQ: HOLI) (“Hollysys”). Members of the consortium also include TFI Asset Management Limited, and Great Wall Capital Co., Ltd has entered into a memorandum of strategic cooperation with Recco Control Technology and Dazheng Group in connection with the proposed acquisition of Hollysys. The consortium reaffirms its non-binding indicative all-cash offer of $25 per share to acquire Hollysys, which the consortium first sent to the board of Hollysys on December 3, 2021, and publicly announced through a press release on January 24, 2022. The offer represents a premium of 65.5% over Hollysys’ closing share price of $15.11 on July 7, 2022. The consortium believes that the subsequent announcement by the board of Hollysys to suspend evaluation of all unsolicited buyout proposals and the board’s continuing non-engaging with the consortium is not in the best interest of Hollysys’ shareholders, especially in light of the attractive premium offered by the consortium, as well as the management’s inability to increase shareholders’ value subsequent to such announcement. The consortium encourages Hollysys’ board to fulfil their fiduciary duties to achieve best interest of shareholders by opening discussions with, and granting due diligence access to, the consortium. The consortium is prepared to move fast to enter into and close the proposed transaction after a customary confirmatory diligence exercise.