Outcome of board meeting of Prime Focus

Held on 27 April 2016

Prime Focus announced that the Board of Directors of the Company at its meeting held on 27 April 2016, inter-alia, considered and approved following:

1. Divestment of 30% stake in Digital Domain-Reliance, LLC("DD-Reliance"), to the existing holder of the remaining 70% stake in DD-Reliance, which is ultimately wholly-owned by Digital Domain Holdings ("DDHL"), whose shares are listed on the Main Board of The Stock Exchange of Hong Kong and

2. Entering into a proposed 50:50 JV with DDHL to carry on Virtual Reality and Advertising businesses in India (the "New JV") on terms as may be agreed between the parties

At a total consideration of US$ 55million worth of shares in the Hong Kong listed DDHL based on an issue price of HK$0.596 per share of which US$30 million is for stake sale.

The said transaction would not fall within related party transactions and the promoter/ promoter group/ group companies does not have any interest in the transaction.

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