Buyer Consortium Led by Recco Control Technology and Dazheng Group Announces Engagement of UBS as Financial Advisor and Reaffirms Non-Binding Indicative Offer of $25 Per Share to Acquire Hollysys

SINGAPORE and HONG KONG,July 8,2022 --Buyer consortium led by Recco Control Technology Pte. Ltd. ("Recco Control Technology") and Dazheng Group (Hong Kong) Investment Holdings Company Limited ("Dazheng Group") announces today that UBS AG Hong Kong Branch[1] has been engaged by Recco Control Technology and Dazheng Group as the financial advisor in connection with the consortium's proposed acquisition of Hollysys Automation Technologies Ltd. (NASDAQ: HOLI) ("Hollysys"). Members of the consortium also include TFI Asset Management Limited,and Great Wall Capital Co.,Ltd has entered into a memorandum of strategic cooperation with Recco Control Technology and Dazheng Group in connection with the proposed acquisition of Hollysys.

The consortium reaffirms its non-binding indicative all-cash offer of $25 per share to acquire Hollysys,which the consortium first sent to the board of Hollysys on December 3,2021,and publicly announced through a press release on January 24,2022. The offer represents a premium of 65.5% over Hollysys' closing share price of $15.11 on July 7,2022.

The consortium believes that the subsequent announcement by the board of Hollysys to suspend evaluation of all unsolicited buyout proposals and the board's continuing non-engaging with the consortium is not in the best interest of Hollysys' shareholders,especially in light of the attractive premium offered by the consortium,as well as the management's inability to increase shareholders' value subsequent to such announcement. The consortium encourages Hollysys' board to fulfil their fiduciary duties to achieve best interest of shareholders by opening discussions with,and granting due diligence access to,the consortium. The consortium is prepared to move fast to enter into and close the proposed transaction after a customary confirmatory diligence exercise.

At this stage,there can be no assurance that any agreement with the board of Hollysys could be reached in respect of a potential acquisition of Hollysys.

[1] UBS AG is incorporated in Switzerland with limited liability.

About Recco

Recco Control Technology Pte. Ltd is a Singapore-incorporated investor in the automation industry and was founded by Mr. Ke Lei,a veteran in the automation industry in China.

Contact:

Mr. Ke LEI,

E-Mail: leike@reccogroup.com

About Dazheng

Dazheng Group (Hong Kong) Investment Holdings Company Limited is a Hong Kong-incorporated financial investor founded by sophisticated entrepreneurs and investment banking professionals.

About TFI

TFI Asset Management Limited is a Hong Kong-based asset management firm which is an indirect subsidiary of Tianfeng Securities Co.,Ltd. (also known as TF Securities,SH: 601162).

About Great Wall Capital

Great Wall Capital Co.,Ltd. is a Beijing-based private equity investment firm under China Great Wall Asset Management Co.,Ltd.,one of the four Chinese state-owned asset management companies.

Cautionary Statement Regarding Forward-looking Statements

This press release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995,as amended. Forward-looking statements are statements that are not historical facts. These statements include projections and estimates and their underlying assumptions,statements regarding plans,objectives,intentions and expectations with respect to future financial results,events,operations,services,product development and potential,and statements regarding future performance. Forward-looking statements are generally identified by the words "believe," "envision," "will," "expect," "anticipate," "intend," "estimate," "plan" and similar expressions. Although the management of Recco,Dazheng,TFI and Great Wall Capital believe that the expectations reflected in such forward-looking statements are reasonable,investors are cautioned that forward-looking information and statements are subject to various risks and uncertainties,many of which are difficult to predict and generally beyond the control of any of Recco,TFI and Great Wall Capital,that could cause actual results and developments to differ materially from those expressed in,or implied or projected by,the forward-looking information and statements. Other than as required by applicable law,none of Recco,TFI and Great Wall Capital undertakes any obligation to update or revise any forward-looking information or statements. The information and opinions contained herein do not take into account the particular investment objectives,financial situation,or needs of any recipient and should not be construed as an offer to buy or sell or the solicitation of an offer to buy or sell the securities mentioned or an invitation to the public. Under no circumstances shall the information contained herein or the opinions expressed herein constitute a personal recommendation to anyone.

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