Buyer Consortium Led by Recco Control Technology and Dazheng Group Issues Statement on Hollysys’ Formal Sale Process

Buyer consortium (“the consortium”) led by Recco Control Technology Pte. Ltd. (“Recco Control Technology”) and Dazheng Group (Hong Kong) Investment Holdings Company Limited (“Dazheng Group”) today issued a statement regarding Hollysys Automation Technologies Ltd.’s (NASDAQ: HOLI) (“Hollysys”) announcement that it has launched a formal sale process. Members of the consortium also include TFI Asset Management Limited, and Great Wall Capital Co., Ltd, who have entered into a memorandum of strategic cooperation with Recco Control Technology and Dazheng Group in connection with the proposed acquisition of Hollysys.

The consortium welcomes Hollysys’ decision to explore strategic options to maximize value for its shareholders. The formation of a Special Committee is a step forward to realization of the true value of Hollysys and the consortium looks forward to engaging with the Special Committee in a full, transparent, and genuine due diligence process. A swift and thorough process will enable the consortium, with the insight of full due diligence, to solidify its non-binding indicative all-cash offer of US$25 per share, or approximately US$1.55 Billion.

“Today’s announcement that Hollysys is launching a full sale process is a step in the right direction for the shareholders of Hollysys,” commented Mr. Ke Lei, director of Recco Control Technology Pte. Ltd “A transparent and full process is clearly in the best interest of Hollysys shareholders and we look forward to discussing our US$25 all-cash offer with the Special Committee. We remain motivated to move into due diligence and subsequent negotiations with the Special Committee and be in a position to sign a definitive agreement shortly after access to full due diligence.”

Separately, the consortium notes the reference to the notices of intention to request a special meeting of the shareholders of Hollysys. The Board has been aware that approximately 32.3% of the shareholders of Hollysys have requested the Board to convene a meeting of all Hollysys shareholders since August 24. While the Special Committee leads the formal sale process, the consortium is hopeful the Board will act in accordance with the wishes of Hollysys shareholders and will convene the special meeting without further delay. The consortium is surprised that the Board has not voluntarily convened a special meeting already, given that nearly one third of the shareholders want a special meeting to be held.