LOS ANGELES, Oct. 26, 2016 (GLOBE NEWSWIRE) -- Nova LifeStyle, Inc. (NASDAQ:NVFY) (“Nova
LifeStyle” or the “Company”), a U.S.-based, leading innovative designer, manufacturer and distributor of modern life style
furniture, today announced it has closed its previously announced Share Transfer Agreement (“Agreement”) with Kuka Design Limited,
a company incorporated in BVI (“Kuka BVI”) to sell NOVA BVI and its subsidiaries, which consists of the Company’s manufacturing
operations in mainland China (the “Transaction”).
With the slow-down of the Chinese economy and a significant increase in labor and other costs for manufacturing
facilities in China, the Company decided to sell NOVA BVI, allowing the Company to transition to a “light-asset” business
model with greater flexibility and scalability while also focusing its operations on designing, developing, branding, marketing and
distributing furniture products in North America, Asia and around the world.
Management Commentary
Ms. Tawny Lam, President, and Interim CEO, stated, "We are pleased to have closed our previously announced sale of our China-based
business assets. We are now looking forward to focusing our entire attention on designing, branding, marketing and
distribution of furnishing products in North America, and developing the Company’s fast growing e-commerce segment.”
Transaction Details
Under the Agreement, Kuka Design BVI has purchased from the Company all of the issued and outstanding shares of NOVA BVI and the
subsidiaries owned by NOVA BVI - Nova Furniture (Dongguan) Co., Ltd., Nova Dongguan Chinese Style Furniture Museum and Dongguan
Ding Nuo Household Products Co., Ltd., which include all their assets and liabilities, for $8,500,000.
About Nova LifeStyle
Nova LifeStyle, Inc., a NASDAQ Global Markets Exchange listed company headquartered in California, is a fast growing, innovative
designer, manufacturer and distributor of modern LifeStyle furniture; primarily sofas, dining rooms, cabinets, office furniture and
related components, bedrooms, and various accessories in matching collections. Nova's products include LifeStyle brands such as
Diamond Sofa, Colorful World, Giorgio Mobili, Nova QwiK, and Bright Swallow International. Nova's products feature urban
contemporary styles that integrate comfort and functionality incorporating upscale luxury designs appealing to LifeStyle-conscious
middle and upper middle-income consumers in the U.S., Asia, Europe, and elsewhere in the world.
To learn more about Nova LifeStyle, Inc., please visit our website at www.NovaLifeStyle.com
Safe Harbor Statement
All statements in this press release that are not historical are forward-looking statements made pursuant to the "safe harbor"
provisions of the Private Securities Litigation Reform Act of 1995. There can be no assurance that actual results will not differ
from the Company's expectations. You are cautioned not to place undue reliance on any forward-looking statements in this press
release as they reflect Nova's current expectations with respect to future events and are subject to risks and uncertainties that
may cause actual results to differ materially from those contemplated. Potential risks and uncertainties include, but are not
limited to, the risks described in Nova's filings with the Securities and Exchange Commission.
Company Contact: INVESTOR RELATIONS: The Equity Group Inc. In U.S. Adam Prior, Senior Vice President +1 (212) 836-9606 aprior@equityny.com In China Katherine Yao, Senior Associate +86-10-6587-6435 kyao@equityny.com
