HEALTHWAY MEDICAL CORPORATION LIMITED

(Co. Regn. No: 200708625C)

PROPOSED ADDITIONAL DISTRIBUTION IN SPECIE

The Board of Directors of Healthway Medical Corporation Limited (the "Company" or "HMC" and together with its subsidiaries, the "Group") wishes to announce that the Company would like to propose an additional distribution in specie to shareholders of the Company ("Shareholders") of up to 675,324 HMD shares ("HMD Shares") held by the Company representing up to 3.38% of the issued share capital of HMD ("Proposed Additional Distribution").
For the avoidance of doubt, any reference to HMD Shares shall also refer to International Healthway Corporation Limited ("IHC") shares ("IHC Shares") to be issued in lieu of HMD Shares pursuant to the restructuring exercise to be undertaken by HMD, where IHC shall be the listing entity instead of HMD.
The Proposed Additional Distribution serves to reward Shareholders for their continuous support of the Group and is in line with the Company's intention and undertaking to divest its entire stake in HMD, with minimal costs. Furthermore, the Proposed Additional Distribution serves to mark a significant milestone in the Company's investment in HMD and the submission of a pre-admission notification to the SGX-ST for the proposed listing of IHC.
The Proposed Additional Distribution will be subject to, inter alia, the approval of Shareholders by way of Ordinary Resolution at the Extraordinary General Meeting to be held on 22 May 2013 at 10.30 a.m. Further information in relation to the Proposed Additional Distribution is set out in the circular to be despatched by the Company to Shareholders on 7 May 2013.
Following the completion of the first distribution in specie which was approved by Shareholders on 28 December 2011 and the Proposed Additional Distribution (if approved by Shareholders) (collectively referred to as "Distributions"), the Company would have declared dividends of up to S$14.815 million comprising up to 2,675,324 HMD Shares representing up to 13.38% equity interest in HMD. These Distributions constitute more than half of the Company's original investment of 25% equity interest in HMD. Shareholders entitled to these Distributions would become direct shareholders of two separately listed companies, namely the Company and IHC, without the need for any additional cash outlay.
After these Distributions have been effected and taking into consideration the previous sale of 1% equity interest in HMD as announced on 20 December 2012, the Company would have 10.62% equity interest in HMD remaining. In line with the Company's intention to fully divest its equity interest in HMD, the Company had also entered into several convertible loan agreements with various third party investors.
The Company will update Shareholders of any future developments on these
Distributions and/or books closure date as soon as practicable. The books
closure date is expected to be fixed after IHC has obtained all relevant approvals for its listing and IHC's Offer Document has been lodged.

BY ORDER OF THE BOARD

Mr Fan Kow Hin

Executive Chairman

6 May 2013

This announcement has been prepared by the Company and its contents have been reviewed by the Company's sponsor, PrimePartners Corporate Finance Pte. Ltd. (the "Sponsor") for compliance with the relevant rules of the Singapore Exchange Securities Trading Limited (the "SGX-ST"). The Sponsor has not independently verified the contents of this announcement.

This announcement has not been examined or approved by the SGX-ST and the SGX- ST assumes no responsibility for the contents of this announcement, including the correctness of any of the statements or opinions made or reports contained in this announcement.

The contact person for the Sponsor is Mr Mark Liew, Managing Director, Corporate

Finance, at 20 Cecil Street, #21-02 Equity Plaza, Singapore 049705, telephone (65) 6229

8088.

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