Harris Technology : Business Update

28 September 2020

ASX ANNOUNCEMENT

Business Update

6/94 Abbott Road

Hallam, VIC, 3803

Australia

Ph: 1300 13 9999

Fax: [phone]

Email: [e-mail]

ACN: 085 545 973

www.ht8.com.au

Online IT and Consumer Electronic goods vendor Harris Technology Group Limited (ASX: HT8) is pleased to provide the following update:

August Revenue

Total sales revenue for August 2020 was $3.32 million (unaudited) which compares to $650,000 for August 2019, an increase of 411%.

Sales within the Pro-Hygiene division were again strong. As announced to the ASX on 31 August 2020, the increase is likely to have been largely driven by the Victorian Government restrictions. The directors are cautious that sales of Pro-Hygiene products may slow down as both the Victorian Government and other Australian states' COVID-19 restrictions are eased.

IT and CE division

The directors are confident that HT8 is strategically well positioned to keep growing the IT and CE product sales based on the following:

• HT8 has well-established itself on the major key e-commerce platforms.
• HT8 believes that the COVID-19 pandemic has structurally and permanently changed the public's shopping behaviour and HT8 can benefit from this move to online shopping.
• As a result of the successful $5 million capital raising in August and September, HT8 now has the financial capacity to expand its IT/CE product range and increase product purchasing.

New Market Platforms

HT8 has recently started selling on two more online market place platforms - Groupon (groupon.com.au) and Mydeal (mydeal.com.au)

Homeware and kitchenware

HT8 has established a new category of homeware and kitchenware in its online business. Key personnel have been recruited for this new initiative. The Company will be initially focusing on the Amazon marketplace and will gradually expand to other e-commerce platforms.

Garrison Huang - CEO of Harris Technology commented:

"HT8 was able to seize the business opportunity in light of the Victoria COVID-19 second wave in its Pro-Hygiene business. The Pro-Hygiene business delivered about $1.4 million revenue in July and August. Our Online IT/CE business is also experiencing strong growth year on year. HT8 has expanded product coverage into mobile phone and accessories. The company is also entering brand new product

6/94 Abbott Road

Hallam, VIC, 3803

Australia

Ph: 1300 13 9999

Fax: [phone]

Email: [e-mail]

ACN: 085 545 973

www.ht8.com.au

categories of homeware and kitchenware. We are very confident that HT8 will continue its growth post-COVID."

The release of this announcement was authorised by the Company's chairman on behalf of the HT8 board.

Andrew Plympton

Chairman

*About Harris Technology Group Limited

Harris Technology Group Limited is a publicly listed company on Australia Stocks Exchange (ASX code: HT8). The company's main business is the e-commerce business of Harris Technology (HT) - www.ht.com.au. Harris Technology is a well-known brand with a 30+ year history in IT/CE retail market covering a very wide range of IT products for small and medium businesses in Australia. Harris Technology was previously owned by Officeworks under Wesfamers and prior to this, it was owned by Coles Myer Group. Harris Technology no longer operates any physical shopfronts - all businesses of Harris Technology is conducted online both on www.ht.com.auand via the major online platforms such as Amazon, Kogan, Catch and eBay etc.