Timeless Software : VOLUNTARY ANNOUNCEMENT – MEMORANDUM OF UNDERSTANDING IN RELATION TO A POSSIBLE INVESTMENT

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, makes no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

VOLUNTARY ANNOUNCEMENT - MEMORANDUM OF UNDERSTANDING IN RELATION TO A POSSIBLE INVESTMENT

This is a voluntary announcement made by TIMELESS SOFTWARE LIMITED (the "Company", together with its subsidiaries, the "Group").

The Board is pleased to announce that on 6 January 2017 (after the trading hours), the Group and China Small Hydropower Investment and Development Co., Limited (the "Target Company") entered into a non-binding memorandum of understanding (the "MOU") in relation to a possible investment in the Target Company ("Possible Investment"). Pursuant to the MOU, the Group would, through cooperation with the Target Company, explore the feasibility of development and operation of small hydropower projects in the People's Republic of China, initially including the Wuyi Mountain of Fujian, and development of the small hydropower intellective management software.

The Company will keep potential investors and the shareholders of the Company (the "Shareholders") informed of any material development in connection with the Possible Investment by way of further announcement(s) as and when appropriate in compliance with the requirements of the GEM Listing Rules.

The Board wishes to emphasize that the MOU does not create any legally binding obligations on any of the parties to the MOU in relation to the Possible Investment. As such, the Possible Investment may or may not proceed. Potential investors and the Shareholders are advised to exercise caution when dealing in the shares of the Company.

Hong Kong, 6 January 2017 Executive Directors:

Mr. Felipe Tan (Chairman) Ms. Lau Yun Fong Carman

Independent non-executive Directors: Ms. Chan Choi Ling

Mr. Chan Mei Ying Spencer Mr. Lam Kwai Yan

Ms. Tsang Wai Chun Marianna

By Order of the Board TIMELESS SOFTWARE LIMITED

Felipe Tan Chairman

This announcement, for which the Directors collectively and individually accept full responsibility, includes particulars given in compliance with the GEM Listing Rules for the purpose of giving information with regard to the Company. The Directors, having made all reasonable enquiries, confirm that to the best of their knowledge and belief the information contained in this announcement is accurate and complete in all material respects and not misleading or deceptive, and there are no other matters the omission of which would make any statement herein or this announcement misleading.

This announcement will remain on the "Latest Company Announcements" page of the GEM website at www.hkgem.com for at least seven days from the date of its publication and on the Company's website at www.timeless.com.hk.