Nova Furniture Ltd., a company incorporated in Samoa (“Nova Samoa” or “Seller”) and wholly owned subsidiary of Nova Lifestyle Inc (NASDAQ:NVFY), completed the transfer of its entire ownership of Nova Furniture Ltd. in BVI (“Nova BVI”), a wholly owned subsidiary of the Seller to Kuka Design Limited, a company incorporated in British Virgin Islands (the “Buyer”), pursuant to a Share Transfer Agreement (the “Agreement”) entered by the Seller and the Buyer on September 23, 2016, as previously disclosed on a Form 8-K filed by the Company on September 29, 2016.

Pursuant to the terms of the Agreement, the Buyer purchased 100% ownership of Nova BVI, which value is primarily derived from Nova BVI’s wholly-owned operating entity Nova Furniture (Dongguan) Co., Ltd. in China (“Nova Dongguan”), and Nova Dongguan’s wholly owned subsidiary Nova Dongguan Chinese Style Furniture Museum (“Nova Museum”) and 90.91% owned subsidiary Dongguan Ding Nuo Household Products Co., Ltd. (“Ding Nuo”).  The total purchase price for Nova BVI is $8,500,000, which has been fully paid on October 6, 2016.