Hollysys Automation Technologies Announces its Second Sizable Acquisition to Further Establish its Strong Foothold in the

 Hollysys Automation Technologies Announces its Second Sizable Acquisition to
      Further Establish its Strong Foothold in the International Market

PR Newswire

BEIJING, March 7, 2013

BEIJING, March 7, 2013 /PRNewswire-FirstCall/ --Hollysys Automation
Technologies, Ltd. (NASDAQ: HOLI) ("Hollysys" or the "Company"), a leading
provider of automation and control technologies and applications in China,
announced today that it signed a stock purchase agreement (SPA) to acquire
100% ownership of Bond Corporation Pte. Ltd. and its group of companies
("Bond"). The total consideration for the acquisition is a combination of cash
and stock, aggregating an equivalent of approximately US$ 73 million,
including a two-year incentive program payable in ordinary shares and
additional incentive shares if Bond meets certain performance targets.

Bond Corporation Pte. Ltd. is a holding company registered in Singapore, with
the subsidiaries Bond M&E Pte. Ltd. incorporated in Singapore in 1979, and
Bond M&E Sdn. Bhd. and Bond M&E (K.L.) Sdn. Bhd. incorporated in Malaysia in
1983 and 1989, respectively. Bond provides complete mechanical and electrical
solutions with end to end capabilities in design, engineering, procurement,
project management, construction and commissioning, and maintenance to a wide
array of industries, including factories, data centers, banks, hospitals,
airports, power stations, gas and instrumentation plants, hotels, commercial
centers, residential buildings and infrastructure works. Bond has a strong
market presence, a highly renowned brand name, and a successful track record
in Southeast Asia.

Pursuant to the stock purchase agreement, Hollysys will pay a fully refundable
cash deposit of US$ 16.39 million within one month after signing the SPA, and,
after the closing, an additional US$ 5.51 million within 6 months after
signing the SPA and US$ 14.6 million within 18 months after signing the SPA,
respectively.

After the closing, Hollysys will issue its ordinary shares worth US$ 14.60
million (40% of total share consideration) to the shareholders of Bond. The
Bond shareholders also are entitled to Hollysys ordinary shares worth US$
10.95 million (30% of total share consideration) as incentive shares in each
of the next two fiscal years if Bond's US-GAAP audited net income equals or
exceeds US$ 8.81 million and US$ 10.57 million for Bond's fiscal year 2013
ending December 31, 2013, and fiscal year 2014 ending December 31, 2014,
respectively. Additional ordinary shares, as a premium on performance, will be
issued to the Bond shareholders if Bond outperforms the targets mentioned
above, but the premium will not exceed 15% of the total incentive shares in
any case. Hollysys and Bond have agreed upon the compensation and incentives
to be given to the management team of Bond to maintain the team stability
after the acquisition.

Dr. Changli Wang, CEO and Chairman of Hollysys, commented: "We are very
pleased with this highly accretive and complementary acquisition of Bond after
our successful acquisition of Concord Corporation Pte. Ltd. and its group of
companies ("Concord"). Concord has a strong presence and capability in the
rail and transportation field in Southeast Asia and Middle East markets, while
Bond has much wider presence in the industrial field in Southeast Asia. We
believe that these two corporations together will further establish our strong
foothold in the fast growing Southeast Asia and Middle East industrial
automation and rail transportation fields. Besides, both of these two
companies can provide Hollysys a readily available channel to cross sell our
existing product lines in rail and industrial segments. We also are excited to
be able to retain a team of seasoned, efficient and productive professionals
through this acquisition. Hollysys will leverage its strong proprietary
technology and its capabilities accumulated from its leading positions in
China's industrial and rail segments to enter and penetrate into international
market, through both organic growth and accretive acquisitions to maximize our
shareholder value."

Mr. Yap Choong, Executive Director of Bond, commented: "We are honored to be
able to join and team up with Hollysys, a well-established proprietary
technology and product provider in industrial automation and rail
transportation in China. We are seeing great opportunities lying ahead of us,
given the fast growth in the infrastructure, residential, industrial
industries in our addressable markets in Southeast Asia. With more than 30
years strong track record, we believe the combination of our existing customer
base and complete electrification solution capabilities and Hollysys'
proprietary technology and products will be of great benefit to capture the
growth opportunities, both in the current addressable geographical regions and
other international markets at large."

Ms. Herriet Qu, CFO of Hollysys, commented: "This is another sizable and
meaningful acquisition since we acquired Concord in 2011. We achieved
productive results after the acquisition of Concord, and made several
significant international breakthroughs. We believe Bond will be a strong
complement to Concord in helping Hollysys to penetrate the Southeast Asia
industrial automation market. We are very pleased to have concluded the SPA to
acquire such a successful platform together with a team of professionals at a
highly accretive valuation to its forward earnings. Bond meets all of our
acquisition criteria, which we laid out as our corporate acquisition strategy,
of accretion, complement, and ease of integration. We expect this acquisition
will be closed around April 1, 2013, from when Bond revenue and income would
be fully consolidated and reported under Hollysys. Going into the future, we
will continue to work on efficiently using our cash to support our company's
stable and sustainable growth and maximize our shareholders' value."

About Hollysys Automation Technologies, Ltd.

Hollysys Automation Technologies is a leading provider of automation and
control technologies and applications in China, Southeast Asia and the Middle
East that enables its diversified industry and utility customers to improve
operating safety, reliability, and efficiency. Founded in 1993 in China,
Hollysys has approximately 3,500 employees with nationwide presence in over 60
cities in China, with subsidiaries and offices in Singapore, Malaysia, Dubai
and India, and serves over 4,000 customers involving more than 15,000 projects
in the industrial, railway, subway and nuclear industries in China, South-East
Asia, and the Middle East. Its proprietary technologies are applied in its
industrial automation solution suite including DCS (Distributed Control
System), PLC (Programmable Logic Controller), RMIS (Real-time Management
Information System), HAMS (HolliAS Asset Management System), OTS (Operator
Training System), HolliAS BATCH (Batch Application Package), HolliAS APC Suite
(Advanced Process Control Package), SIS (Safety Instrumentation System),
high-speed railway signaling system of TCC (Train Control Center), ATP
(Automatic Train Protection), Subway Supervisory and Control platform, SCADA
(Surveillance Control and Data Acquisition), nuclear conventional island
automation and control system and other products.

About Bond Corporation Pte. Ltd. and Its Group of Companies

Bond Corporation Pte. Ltd. is a holding company registered in Singapore, with
the subsidiaries Bond M&E Pte. Ltd. incorporated in Singapore in 1979, and
Bond M&E Sdn. Bhd. and Bond M&E (K.L.) Sdn. Bhd. incorporated in Malaysia in
1983 and 1989, respectively. Bond provides complete mechanical and electrical
solutions with end to end capabilities in design, engineering, procurement,
project management, construction and commissioning, and maintenance to a wide
array of industries, including factories, data centers, banks, hospitals,
airports, power stations, gas and instrumentation plants, hotels, commercial
centers, residential buildings and infrastructure works. Bond has a strong
presence, brand name recognition and track record in the rapidly developing
markets of Malaysia, Singapore and other countries in Southeast Asia, executed
by its strong, capable and professional workforce with high-standards, quality
work and on-time completion working principles. Bond enjoys a high reputation
and long term working relationships with its customers. It has MS ISO
9001:2008 Quality Management Systems certification for the implementation of
quality control in projects.

SAFE HARBOUR:

This release contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. All statements, other than
statements of historical fact included herein are "forward-looking
statements," including statements regarding: the ability of the Company to
achieve its commercial objectives; the business strategy, plans and objectives
of the Company and its subsidiaries; and any other statements of
non-historical information. These forward-looking statements are often
identified by the use of forward-looking terminology such as "believes,"
"expects" or similar expressions, involve known and unknown risks and
uncertainties. Such forward-looking statements, based upon the current
beliefs and expectations of Hollysys' management, are subject to risks and
uncertainties, which could cause actual results to differ from the forward
looking statements. 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. Investors 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 those discussed in the Company's reports that are filed with the
Securities and Exchange Commission and available on its 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 factors. Other than as required under the securities laws,
the Company does not assume a duty to update these forward-looking statements.

For further information, please contact:

Hollysys Automation Technologies, Ltd.
www.hollysys.com
+8610-58981386
investors@hollysys.com

SOURCE Hollysys Automation Technologies, Ltd.

Website: http://www.hollysys.com
 
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