Launch of "Franchise" System

JQW plc

("JQW" or the "Group")

Introduction of "Franchise" System to expand sales agencies

JQW plc, a domestic Chinese B2B e-commerce operator, is pleased to announce today that the Group has launched its first "franchise" arrangement in Chongqing City, to support its planned roll-out of new sales agencies. This represents an important milestone for the Group and a deployment of some of the funds raised at the time of the Group's admission to AIM in December 2013 in accordance with the Group's stated use of proceeds at that time.

Under the "franchise" system, JQW will provide financial support to sales agencies to acquire computer systems and to refurbish offices, in return for a lower percentage sales commission - approximately 10 per cent lower. The Board believes that this will help the Group expand its presence more rapidly to other provinces in China. In 2013, sales generated from sales agents increased by 88% to RMB 388.0 million and comprised some 79% of total sales whereas direct sales increased by 29% to RMB 105.1. The Group's target is to have at least 60 sales agencies in place by the end of 2015, compared to 35 sales agencies currently.

Cai Yongde, Chairman of JQW, said: "We are pleased to announce the launch of our first "franchise" arrangement in Chongqing City in South West China, a City which serves as the economic centre of the upstream Yangtze basin and which has a population of around 7 million people. China is a large country with many large cities. We intend to expand into more provinces, particularly in Central, West, and North China, where a local presence is a big advantage in dealing with local dialects and customs. Going forward, the "franchise" arrangements will play an important and cost effective role in attracting new fee paying members to the 197,000 subscribers to our Sheng-Yi-Tong membership packages as of 31 December 2013."

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About JQW plc

JQW is a leading domestic business-to-business e-commerce provider based in the Chinese province of Jiangsu. The Group's core business is its online B2B platform, www.jqw.com, which has been developed to encourage domestic trade by connecting Chinese SMEs with potential trade partners. Founded in 2004, the platform was developed to help to market Chinese SME's websites. JQW has evolved rapidly to become the second highest ranked B2B e-commerce website and operates, what the director's believe to be, the first dedicated B2B search engine, www.jqw.cn.

JQW offers a low-cost entry point for Chinese SMEs to promote themselves and their B2B products to potential buyers. In order to increase transaction opportunities, JQW offers its clients a broad range of services including website design, commercial search services and advertising.

There are approximately 49 million SMEs in China manufacturing a diverse range of products, accounting for 60% of the country's GDP. The number of mobile internet-access users in China stood at 839 million at February 2014 and there is a considerable amount being invested into the country's telecommunications infrastructure. These factors have driven an increased demand for domestic trade of B2B, B2C and C2C e-commerce. With the majority of these SMEs requiring the use of third party B2B e-commerce platforms to promote their businesses and access trade partners, the Board believes that JQW offers a robust and highly reputable branded platform. With exposure in over 50 industry sectors and considerable scope for future growth, JQW is in a strong position to capitalise on the development of this market.

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