Urban Tea Announces Entry into Letter of Intent to Acquire Controlling Stake of A Brand Management Company and A Supply Chain Management Company

CHANGSHA,China,Aug. 27,2020 -- Urban Tea Inc. (the "Company," "we" or "Urban Tea") (NASDAQ: MYT),a premier retailer of specialty teas and baked goods based in Hunan,announced today that the Company and its wholly-owned subsidiary Hunan Ming Yun Tang Brand Management Co.,Ltd. ("Ming Yun Tang") entered into a non-binding letter of intent ("LOI") with Chuangyeying Brand Management Co.,Ltd. ("CYY"),Store Master Food Trading Co.,Ltd. ("Store Master") and the shareholders of CYY and Store Master.

CYY has franchise permit and owns multiple registered trademarks in China. It currently manages over 300 tea beverages franchisees. Store Master specializes in supply chain management,product research and development,and optimizing long-term and stable supply chains. Store Master also owns a scalable warehouse with an advanced logistics management system. CYY and Store Master are commonly owned by five individuals.

The LOI contemplates that the parties would enter into certain definitive agreement pursuant to which Ming Yun Tang will acquire 51% of each of the two companies' equity with cash and restricted shares of Urban Tea. If the acquisitions are completed,the collaboration will consolidates the resources and expertise of Ming Yun Tang,CYY,and Store Master in brand management,sales networks,and supply chain technologies to better serve our customers and expand our business. As the transaction proceeds,the Company will publicly disclose required information either through press releases or SEC filings,as appropriate.

Ms. Kan Lu,Chief Financial Officer of Urban Tea,commented,"This LOI indicates management's strong determination in the execution of our domestic expansion plan. Moving forward,we will work with all parties to negotiate and finalize the definitive acquisition agreements. If definitive agreements are executed as planned,Ming Yun Tang will have control over more than 300 franchiseesalong with a more complete supply chain system,stronger R&D capability,and more expansive marketing channels in China upon completion of the acquisitions."

Mr. Chen Min,Founder of CYY,said,"I am delighted to enter into this LOI with Hunan Ming Yun Tang. The planned acquisition will leverage our combined expertise and resources to accelerate our business development to the next level. "

Completion of the acquisition is subject to due diligence investigations by Ming Yun Tang,the negotiation and execution of definitive agreement,satisfaction of the conditions negotiated therein including the approval of the Company's Board of Directors,and the satisfaction of other customary closing conditions. There can be no assurance that a definitive agreement will be entered into or that the proposed transaction will be consummated. Further,readers are cautioned that those portions of the LOI that describe the proposed transaction,including the consideration to be issued therein,are non-binding.

About Urban Tea,Inc.

Urban Tea,Inc.is an emerging specialty tea product distributer and retailer headquartered inChangshaCity,Hunan Province,China. Through its wholly owned subsidiary,Mingyuntang (Shanghai) Tea Limitedwhich controlsHunan Ming Yun Tang Brand Management Co.,Ltd.andHunan39Pu Tea Co.,Ltd.,the Company currently market a wide range of trendy tea drinks,light meals,and pastries targetingChina'snew urban generation inHunanprovince. Our products are focused on not only their taste but also their aesthetic presentation and health benefits. Our products are currently being offered via our own stores. For more information,please visit:http://ir.h-n-myt.com/investor.

Forward-Looking Statements

This press release contains certain statements that may include "forward-looking statements." All statements other than statements of historical fact included herein are "forward-looking statements." These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions,involving known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable,they do involve assumptions,risks and uncertainties,and these expectations may prove to be incorrect. You should not place undue reliance on these forward-looking statements,which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors,including the uncertainty about the spread of the COVID-19 virus and the impact it will have on the Company's operations,the demand for the Company's products,supply chains,local government's regulation of restaurants,and economic activity in general. These and other risks and uncertainties are detailed in the risk factors discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on the SEC's website (http://www.sec.gov).All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these risk factors. Other than as required under the applicable securities laws,the Company does not assume a duty to update these forward-looking statements.

The following factors,among others,could cause actual results to differ materially from those described in these forward-looking statements: the occurrence of any event,change or other circumstances that could give rise to the terms of the LOI not hereafter being memorialized in a definitive agreement; the outcome of any legal proceedings that have been,or will be,instituted against Urban Tea or other parties to the LOI following announcement of the LOI and transactions contemplated therein; the inability to complete the transactions contemplated by the LOI due to the satisfy closing conditions; risks that the proposed transaction disrupts current plans and operations and the potential difficulties in employee retention as a result of the announcement of the LOI and consummation of the transaction described therein; costs related to the proposed acquisition; changes in applicable laws or regulations; the ability of the combined company to meet its financial and strategic goals,due to,among other things,competition,the ability of the combined company to grow and manage growth profitability,maintain relationships with customers and retain its key employees; the possibility that the combined company may be adversely affected by other economic,business,and/or competitive factors; and other risks and uncertainties described herein,as well as those risks and uncertainties discussed from time to time in other reports and other public filings with the Securities and Exchange Commission (the "SEC") by Urban Tea.

Additional information concerning these and other factors that may impact our expectations and projections will be found in our periodic filings with the SEC,including our Annual Report on Form 20-F for the fiscal year ended June 30,2019. Urban Tea's SEC filings are available publicly on the SEC's website at www.sec.gov. Urban Tea disclaims any obligation to update the forward-looking statements,whether as a result of new information,future events or otherwise.

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