03.23.18

Bringing in hardware technology for promoting mass consumer adoption of VR

• (23^rd March 2018, Hong Kong) - Digital Domain Holdings Limited (the “Company” or “Digital Domain”; stock code: 547), one of the largest and most innovative providers of visual effects and virtual reality (VR) experiences officially announced the acquisition of 60% of the effective interest of VR Technology Holdings Ltd, Shenzhen（“3Glasses”）on 22^nd March, 2018. This strategic acquisition gives the Company an opportunity to tap into the VR headset market with promising prospects and enables the Group to extend its VR business to cover hardware technology, building a fully integrated VR ecosystem that encompasses VR content production, content distribution and VR hardware, which is crucial in distributing VR contents.

• As one of the pioneers and leaders of China's VR hardware equipment, 3Glasses has launched China's first VR headset- 3Glasses D1, China's first mixed reality (MR) headset- 3Glasses Blubur S1 (Windows Mixed Reality Developer Kit) and pioneered the development of the VR player- 3Box. With more than 15 years of experiences in VR/AR technology development, 3Glasses has grown into an innovative technology company covering VR software, hardware and developer tools, content platforms and industry solutions. By 2016, 3Glasses together with Samsung, Hewlett-Packard, Dell, Lenovo, Acer, Fujitsu and Asus became the Microsoft “Windows Mixed Reality” global partner. This further demonstrated the company’s strength and global influence. Furthermore, 3Glasses made a profit guarantee for the acquisition, committing that its annual profits in 2018 and 2019 would be no less than RMB 30 million and RMB 50 million respectively. This definitely benefits Digital Domain in long-term business development.

• Since entering the VR industry in 2014, Digital Domain has been strongly committed in promoting mass consumer adoption of VR . Over the past four years, the Company had made significant progress and successfully established business models in VR content production, as well as distribution of such VR contents through online App platforms and offline experience stores, namely DD Space VR Theatre. Digital Domain, with its premier content creation and production capabilities, exclusive distribution platform – VR Theatre now combined with the hardware technology edge from 3Glasses, will enable the Group's VR content and application distribution business to develop more rapidly, helping the company to create even more enriched virtual reality experience for the consumer market.

• Meanwhile, Digital Domain is proactively exploring opportunities to develop its VFX, VR, Computer graphic, virtual human and immersive entertainment businesses in the Greater China market.

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