Update

SINOSOFT TECHNOLOGY PLC

("SINOSOFT" OR "THE COMPANY")

Update

Further to the trading update issued on 9th July 2010, the Board of Sinosoft has conducted initial enquiries into the matters giving rise to the net loss of $3.8 million referred to therein.

This loss arose from a number of foreign exchange contracts entered into in the second half of May 2010 in respect of which the Company's internal stop-loss limits were not complied with. This breach of limits and the consequent loss were not communicated by Mr Liu Biao, the Company's Investment Officer to the Board in a timely manner. As a consequence, he has resigned from the Company.

The Board has resolved to suspend all investment activity, other than the placing of fixed deposits, pending a full review of the Company's business, investment and strategic objectives. All remaining open foreign exchange positions have therefore been closed out.

A further announcement will be made when the full review has been completed.

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