HONG KONG, October 31, 2014-

Sateri Holdings Limited ("Sateri" or the "Company"; stock code: 1768) and its subsidiaries ("the Group"), a leading global specialty cellulose company, today announced that it entered into a sale and purchase agreement to sell the Group's entire viscose staple fiber ("VSF") business in the PRC to Pacific Viscose Limited ("PVL" or "Purchaser"), an affiliate of the RGE Group controlled by the Company's ultimate controlling shareholder (the "Transaction"). The consideration for the Transaction, which comprises the audited combined net asset value of the VSF business and outstanding shareholder loans as at 31 October 2014, is currently estimated to be US$589.5 million. Taking into account the net debt in the VSF business, which is estimated to be US$273.5 million as at 30 September 2014, the consideration for the Transaction implies an enterprise value of US$863 million for the VSF business. In addition to the estimated consideration of US$589.5 million, the Purchaser will pay an additional US$30 million representing part of the trading debt due from the VSF business to the rest of the Group.

In total, the Group is expected to receive total gross cash proceeds of approximately US$619.5 million from the Transaction. This translates into a gross cash value of HK$1.40 per share, which represents 92.7% of the Company's closing share price of HK$1.51 on 15 September 2014, the last day preceding the initial announcement on the potential Transaction.

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