Placing of new Shares and Collaboration Agreement

13 April 2015

Galasys PLC

("Galasys" or the "Group")

Placing of New Shares and Collaboration Agreement

Proposed placing of 9,985,655 New Ordinary Shares at 30 pence per New Ordinary Share

Galasys PLC (AIM:GLS), a market leading provider of integrated amusement park solutions and services to the fast growing amusement parks industry in Asia is pleased to announce the proposed placing of 9,985,655 new Ordinary Shares at 30 pence per new Ordinary Share by way of a Subscription Agreement (the "Placing"). The new Ordinary Shares are to be subscribed for by Focus Information Technology Co., Limited ("FIT"), a wholly owned subsidiary of Beijing Shiji Information Technology Co., Ltd. ("Shiji Information"), a company listed on the Shenzhen Stock Exchange (stock code: 002153).

The Placing is subject to the terms and conditions of the subscription agreement and conditional upon, amongst other things, admission of the new Ordinary Shares to trading on AIM occurring by no later than 15 April 2015 (or such date as the parties may agree) and the payment by FIT to Galasys of the gross placing proceeds. Application is being made for the new Ordinary Shares, which will on issue rank pari passu with the existing Ordinary Shares, to be admitted to trading on AIM and such admission is expected to occur on or around 15 April 2015.

Galasys and Shiji Information have also signed a Collaboration Agreement under the terms of which the two groups will cooperate in the tourism and leisure industry in Asia by selling, bundling and, where possible, integrating their respective technology solutions, Internet ticketing platforms and payment services for the Asian market.

Highlights of the Placing and Collaboration Agreement are:

· The placing price represents a premium of approximately 33.3 per cent to the closing mid-market price of 22.5 pence per Ordinary Share as at 10 April 2015, the last dealing day prior to this announcement.

· The new funds will enable the Group to accelerate the delivery of its growth strategy. On completion of the placing, Shiji Information, through FIT, will own approximately 13 per cent of the enlarged share capital of Galasys.

· Under the terms of the Subscription Agreement, Shiji Information will have the right to nominate a candidate to join the board of Galasys to the extent that and for so long as it holds at least 20 per cent of the issued share capital of Galasys.

· For a period of 10 years and for so long as Shiji Information holds 10% of the share capital of Galasys, under the terms of the Collaboration Agreement, Galasys and Shiji Information will work together to develop, integrate, promote and sell their respective systems and services and leverage on each other's regional networks and customers to realise the synergies between the two groups.

· Following the issue of the new Ordinary Shares the total number of Ordinary Shares in issue will be 76,556,693.

Galasys has established itself as a market leading provider of integrated amusement park solutions and services to premier theme park operators in Asia and has identified the online travel agency (OTA) sector as another key vertical for its future growth. Shiji Information's investment in the Group is a powerful endorsement of the Group's solutions and its cloud OTA ("CLOTA") transformation strategy. The resultant strategic alliance with Shiji Information represents a significant step forward in the development of the Group.

Shiji Information has identified Galasys as one of the key players in Asia in the specialised vertical of theme parks within the wider leisure and entertainment industry.

Mr. Vincent Lai, Chief Financial Officer of Shiji Information, said:

"We look forward to this exciting strategic interest in Galasys and give our full endorsement to Galasys' cloud strategy, the CLOTA middleware platform that is aligned with our online-to-offline strategic business model, championed by Shiji Information. By leveraging on Shiji CHINA-online and payment gateway, we are confident the integration of these various resources and business networks with CLOTA would accelerate the growth of CLOTA to achieve Galasys' planned transformation."

Commenting on the announcement, Mr. Seah, Chief Executive, said:

"We welcome the strategic investment by Shiji Information into Galasys. In addition to the cash infusion to accelerate the Group's growth, this strategic relationship will allow Galasys to leverage on Shiji Information's extensive network of hospitality, F&B and retail clientele in Asia, an obvious complement to Galasys' strength in theme parks. We are excited with the tremendous opportunities ahead of us as we realise the benefits of this strategic investment."

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About Galasys Group

Galasys is a leading integrated and modular amusement park solutions and services provider to premier amusement parks in China and South East Asia. Through its proprietary systems, the Group provides amusement park operators with the ability to sell, manage and analyse tickets, visitors, merchandise sales and other amusement park operations. It has been operating since 2005 and supplies solutions and services to more than 100 amusement parks in China and South East Asia. The Group has invested more than 50 man-years in R&D and owns the intellectual properties to its software and systems. The Group's first ticketing management system contract was awarded in 2005 by Chime Long Group. The Group currently employs and retains more than 140 people across Asia.

About Beijing Shiji Information Technology Co. Ltd

Shiji Information was founded in 1998 and is principally engaged in the development and sale of systems and solutions for the hospitality industry. Its major products include property management systems and software such as the OPERA line of products and SINFONIA, Point-Of-Sale systems including the Micros series of products as well as other information management systems for the F&B industry and payment systems and services. It is headquartered in Beijing, China with branch offices in Shanghai, Guangzhou, Beihai, Dalian and Shenzhen in China.

Focus Information Technology Co., Limited is a wholly owned subsidiary of Shiji Information and offers hotel and restaurant information management systems and solutions. It was founded in 2007 and is based in Hong Kong with offices in Hong Kong, Malaysia and Singapore.

Shiji Information is listed on the Shenzhen Stock Exchange in China since 2007 and employs over 1,700 staff across all its offices in Asia and has over 6,000 hotel customers, over 100,000 restaurant customers and over 200,000 retail shops installed with its systems and solutions. Alibaba and Shiji Information announced that the Alibaba Group (NYSE:BABA) has agreed to acquire a 15% stake in Shiji Information for RMB2.81 billion (c. GBP 305 million) in September 2014, via its subsidiary Taobao (China) Software Co., Ltd. ("Taobao"). Completion of the investment into Shiji Information by Taobao is subject to the approval of the China Securities Regulatory Commission.