GLS.L Regulatory News (GLS)

27 June 2014

Galasys PLC

("Galasys" or "The Group")

Second Contract with Dalian Wanda Group and OCT system upgrade in China

Galasys PLC, a leading provider of ticketing systems and solutions to the fast growing theme park industry in Asia, is pleased to announce that further to signing its first contract with Dalian Wanda Group ("Dalian Wanda") announced on 22 May 2014, the Group has been awarded a second contract to provide its ticketing and membership management modules and services to Dalian Wanda's Kids Parks ("Wanda Kids Parks") across China (the "Wanda Contract"). Also, the Group has just secured another significant system upgrade contract with OCT, one of its long-standing customer at the Happy Valley Chengdu site (the "OCT Upgrade Contract").

Wanda Kids Parks

The Wanda Kids Parks are part of Wanda Children Entertainment Co. Ltd, a wholly owned subsidiary of Dalian Wanda, and focuses on developing the creative-parenting culture for children aged between 1-12 years. Starting with 9 department stores across China in major cities such as Beijing, Guangzhou, Kunming and Fujian, under Dalian Wanda's plan, each Wanda Kids Park is divided into two zones and will incorporate various backgrounds such as career experience, theme photography, birthday party and animation studios. Dalian Wanda projects that by year 2020, its total investment in this project will reach 5 billion Yuan (c. £480 million), with an estimated presence at 200 stores nationwide.

Terms of the Wanda Contract

Galasys will design and customise the entire ticketing management systems, as well as the membership management module to support the Wanda Kids Entertainment Business Management Platformand thereafter provide maintenance and support services. Implementation is scheduled for October 2014 with the total value of the project, including software services, totalling 1.9 million Yuan (c. £180,000); this includes 1 year for software support and licensing. Pursuant to the terms of the Wanda Contract, Galasys should receive 95% of its fees once the systems have been operational for five months, with the balance paid after one year of operations. Galasys will be the sole supplier and operator of the systems for all the Wanda Kids Parks.

OCT Happy Valley Chengdu ("OCT Chengdu")

Opened in 2009, OCT Chengdu in Sichuan Province is the third installation of the Happy Valley theme-park chain. With an area of 470,000 square meters, OCT Chengdu has more than 130 facilities offering different experiences, including 43 entertainment sites, 58 human ecology landscapes, 10 performing arts theatres and 20 theme games.

Terms of the OCT System Upgrade Contract

After successful implementation of the ticketing systems in 2008, this upgrade relates to multi-park ticketing, agency management, ticket inventory management, financial analysis, group reporting and point of sales for OCT Chengdu and the project value is 1,240,000 Yuan (c. £118,000 ).

Commenting on the announcement, Mr. Seah, Chief Executive of Galasys, said:

"We are pleased to announce more project wins since our AIM IPO including another significant project from the Dalian Wanda Group. This represents another important milestone in our relationship with Dalian Wanda and bears testament to Dalian Wanda's confidence in our technology and services. As Dalian Wanda continues with their expansion plans, we are excited with the opportunities available to Galasys, to deploy our ticketing management system across many main cities in China. We are also delighted to announce that we have secured a significant upgrade contract from the OCT Group at its Chengdu Happy Valley theme-park. We are proud to supply ticketing solutions to sites across the OCT Group and this latest contract further highlights continued confidence from our existing customers."

Enquiries:

About Galasys

www.galasystec.com

Galasys is a leading integrated and modular amusement park solutions and services provider to premier amusement parks in China and South East Asia. Through its proprietary systems, the Group provides amusement park operators with the ability to sell, manage and analyse tickets, visitors, merchandise sales and other amusement park operations. It has been operating since 2005 and supplies solutions and services to 78 amusement parks in China and South East Asia. The Group has invested more than 50 man-years in R&D and owns the intellectual properties to its software and systems.

The Group's market position in China has been the culmination of a proven and reliable technology platform and long lasting relationships with amusement park operators, for example Chime Long and the OCT Group, which are two of the largest amusement park operators in China by number of park visitors and tickets sold annually. In addition, the Group is well placed to benefit from the continued urbanisation and growth in Asia.

The Group's first ticketing management system contract was awarded in 2005 by Chime Long Group. The Group currently employs 62 members of staff and exclusively retains 44 research and development staff provided by third party developers.