Healthway Medical Corporation Limited : Proposed Placement of up to 97,500,000 New HMC Shares at $0.1026 Per Placement Share dated 27 May 2013

PROPOSED PLACEMENT OF UP TO 97,500,000 NEW ORDINARY SHARES IN THE CAPITAL OF HEALTHWAY MEDICAL CORPORATION LIMITED AT A PLACEMENT PRICE OF S$0.1026 PER PLACEMENT SHARE

The Board of Directors of Healthway Medical Corporation Limited (the "Company") wishes to announce that the Company had on 23 May 2013, entered into a placement agreement (the "Placement Agreement") with DMG & Partners Securities Pte Ltd as placement agent (the "Placement Agent"). Pursuant to the Placement Agreement, the Company has agreed to issue up to 97,500,000 new ordinary shares (the "Placement Shares") in the capital of the Company at a placement price of S$0.1026 for each Placement Share (the "Placement Price"), amounting to an aggregate consideration of up to S$10,003,500 and on the terms and conditions of the Placement Agreement (the "Placement"). The Placement Agent has agreed to procure the subscription and payment for, the Placement Shares at the Placement Price on commercially reasonable effort basis. A placement commission of 3% of the Placement Price for each Placement Share subscribed, shall be paid by the Company to the Placement Agent pursuant to the Placement Agreement.

Placement Shares

The Placement Shares will be placed by the Placement Agent to institutional and other accredited

investors.

The Placement Shares are intended to be issued pursuant to the general share issuance mandate ("General Mandate") obtained at the annual general meeting of the Company held on 30 April 2013 ("2013 AGM"), which authorises the Directors of the Company to allot and issue new shares in the capital of the Company ("Shares") not exceeding 100% of the total number of issued Shares (excluding treasury shares) as at the date of the 2013 AGM, of which the aggregate number of Shares to be issued other than on a pro-rata basis to the existing shareholders of the Company shall not exceed 50% of the Company's total number of issued Shares (excluding treasury shares).

The number of issued Shares (excluding treasury shares) as at the date of 2013 AGM was 2,210,736,183 Shares. No Shares were previously issued under the General Mandate prior to the Placement and as such, the number of Shares that may be issued pursuant to the General Mandate is 2,210,736,183 Shares, of which the maximum number of Shares to be issued other than on a prorata basis is 1,105,368,091 Shares.

Assuming that the Placement Shares are fully subscribed, the Placement Shares represent 4.41% of the Company's existing issued and paid-up share capital of 2,210,736,183 Shares (excluding treasury shares) as at the date of this announcement and 4.22% of the Company's enlarged issued and paidup share capital (excluding treasury shares) of the Company of 2,308,236,183 Shares pursuant to the completion of the Placement.

The Placement Shares, when issued and fully paid, will rankpari passuin all respects with the then existing ordinary shares of the Company except that they will not rank for any dividends, rights, allotments or other distributions the record date for which falls on or before the date of issue of the Placement Shares.

The Placement Shares will not be issued to any of the persons listed in Rule 812(1) of the Listing Manual (Section B: Rules of Catalist) ("Catalist Rules") of the Singapore Exchange Securities Trading Limited (the "SGX-ST") and will be in compliance with Rule 812 of the Catalist Rules. In addition, the issuance of the Placement Shares will not be made without the prior approval of the shareholders of the Company ("Shareholders") in a general meeting if such issuance would bring about a transfer of controlling interest.

Placement Price

The Placement Price of S$0.1026 represents a discount of approximately 9.92% of the weighted average price of S$0.1139 for each Share, based on trades done on the Catalist of SGX-ST on 22 May 2013 (being the last full market day prior to the signing of the Placement Agreement) and was arrived at following arm's length negotiations between the Company and the Placement Agent.

Conditions precedent and other salient terms

The Placement is conditional upon,inter-alia,

a) the receipt by the Company of the listing and quotation notice ("LQN") from the SGX-ST for the listing and quotation of the Placement Shares on Catalist and not having been revoked or amended and, where such approval is subject to conditions, to the extent that any conditions for the listing and quotation of the Placement Shares on the Catalist are required to be fulfilled on or before the date falling three (3) business days after the date on which the SGX-ST grants a LQN for the listing and quotation of the Placement Shares on the Catalist (or such other date as the Company and the Placement Agent may agree)("Completion Date"), they are so fulfilled;

b) the offer, allotment, issue and subscription of the Placement Shares not being prohibited by any statute, order, rule, regulation or directive promulgated or issued after the date of the Placement Agreement by any legislative, executive or regulatory body or authority of Singapore or any other jurisdiction, which is applicable to the Company or the Placement Agent; and

c) there not having occurred, in the opinion of the Placement Agent, any material adverse change, or any development reasonably likely to involve a prospective material adverse change, whether or not arising from transactions in the ordinary course of business, subsequent to the date of the Placement Agreement which, in the opinion of the Placement Agent, is or is reasonably likely to be materially adverse in the context of the Placement or is reasonably likely to prejudice materially the success of the Placement or dealings in the Placement Shares in the secondary market.

There will not be any Prospectus or Offer Information Statement issued in connection with the Placement as the Placement will be made pursuant to exemption under Sections 274 and 275 of the Securities and Futures Act, Chapter 289 of Singapore.

The Sponsor of the Company, PrimePartners Corporate Finance Pte. Ltd., will be submitting an additional listing confirmation to the SGX-ST on behalf of the Company for the listing of and quotation of the Placement Shares on Catalist. An announcement will be made in due course to notify the shareholders when the LQN is obtained.

Financial Effects

For illustrative purposes, and based on the unaudited financial statements of the Company for the three months ended 31 March 2013 ("Unaudited Results") and assuming that the Placement Shares are fully subscribed and the Placement had been effected on 31 March 2013, the net assets value per Share of the Company and its subsidiaries (the "Group") will increase from 9.64 Singapore cents to 9.66 Singapore cents.

For illustrative purposes, based on the Unaudited Results and assuming that the Placement Shares are fully subscribed and the Placement had been effected on 1 January 2013, the earnings per Share of the Group for the three months ended 31 March 2013 will decrease from 0.069 Singapore cents to 0.066 Singapore cents.