Business Acquisition – Transbotics

31 May 2018 Listed Company Relations New Zealand Exchange Limited PO Box 2959 Wellington Dear Sir/Madam BUSINESS ACQUISITION - TRANSBOTICS The Board of Scott Technology Ltd (SCOTT) is pleased to announce that the company has reached a conditional agreement to purchase the business assets and intellectual property of Transbotics Corporation (Transbotics) a US based AGV (automated guided vehicle) manufacturer, headquartered in Charlotte, North Carolina. This strategic acquisition will achieve our goal of building a complete end-to-end offering for the overall production process from raw material receipt to final distribution. The recent acquisition of Alvey was the first step toward this goal, however an AGV business such as Transbotics was also needed to complement these back end logistic capabilities. The acquisition of Transbotics is consistent with SCOTT's acquisition strategy of accelerating market access, while providing us with skills and technologies faster and at a lower cost than doing it ourselves. Recently SCOTT has engaged in projects that have required the integration of AGV systems from third parties. We will now be able to meet this need in house, while removing the risk and cost associated with outsourcing. It will also provide a strong platform to launch SCOTT's existing materials handling and logistics products into the North American market. This transaction will add 30 team members to our current workforce of over 700 globally. The effective completion date is currently scheduled to be 1 June 2018 and the market will be further updated once all conditions, including Transbotics shareholder approval, have been satisfied. About Transbotics Since 1982, Transbotics Corporation has specialised in the design, installation and support of Automatic Guided Vehicles (AGVs), and Automated Guided Carts (AGC's) including custom engineered vehicles to provide proven, reliable material handling solutions for production and warehouse facilities. The Scott Board is excited about the opportunities that the acquisition of Transbotics will provide to the Scott Group. Yours faithfully S J McLauchlan C C Hopkins Chairman Chief Executive Ph: +64 27 433 5481 Ph: +64 27 815 975 End CA:00318776 For:SCT Type:TRANSACT Time:2018-05-31 14:22:08