The board of directors of Sage International Group Limited announced that based on the preliminary assessment of the unaudited financial information of the group for the year ended 31 December 2013 and the information currently available to the board, the group will record a loss for the financial year and such loss may increase significantly as compared with the loss recorded for the corresponding year ended 31 December 2012. Based on the information currently available, the board believes that the loss was primarily attributable to the impairment loss of the cemetery assets use rights and fair value loss on revaluation of certain convertible bonds issued by the company. The Board considers that both loss-making items are non-cash items and do not have an impact on the existing operating cash flows of the group.

The information contained in this announcement is only a preliminary assessment made by the board based on the unaudited consolidated management accounts for the financial year, and is not based on any figure or information that has been audited or reviewed by the company's auditor.