ARHT Media Inc. Announces Closing of CDN$2 Million Private Placement Financing

TORONTO, ONTARIO--(Marketwired - March 1, 2017) -

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ARHT Media Inc. (the "Company" or "ARHT") (TSX VENTURE:ART) is pleased to announce the closing of its CDN$2 million non-brokered private placement financing (the "Offering") with NetDragon Websoft Holdings Limited ("NetDragon") previously announced on January 11, 2017. NetDragon indirectly purchased 13,333,333 common shares in the capital of ARHT (the "Common Shares") at a price of CDN$0.15 per Common Share.

ARHT's shareholders overwhelmingly approved the private placement financing and the creation of NetDragon as a new control person at the ARHT special shareholder meeting held on February 23, 2017. After excluding the votes attached to the common shares held by NetDragon, 99.99% of the common shares represented at the special meeting were voted in favour of the proposed financing and creation of a new control person.

After closing of the Offering, NetDragon now indirectly owns approximately 29.72% of ARHT's issued and outstanding Common Shares on a non-diluted basis through its wholly owned subsidiary, NetDragon Websoft Inc. BVI ("NetDragon Websoft Inc. (BVI)"). NetDragon has the right to nominate one director to the ARHT board and the right to maintain its pro rata interest in the Company, in the event of future distributions.

The securities issued in connection with the Offering are subject to statutory resale restrictions until July 2, 2017. The TSX Venture Exchange has provided conditional approval for closing of the Offering. The proceeds from the Offering are expected to be used to repay loans, fund events and for general working capital purposes.

About NetDragon

NetDragon Websoft Holdings Limited (HKSE:0777) is a global leader in building Internet communities. Established in 1999, NetDragon is a vertically integrated, cutting-edge R&D powerhouse with a highly successful track record which includes the development of flagship MMORPGs such as Eudemons Online and Conquer Online, China's number one online gaming portal, 17173.com, and China's most influential smartphone app store platform, 91 Wireless, which was sold to Baidu in 2013 in what was at the time the largest Internet M&A transaction in China. Being China's pioneer in overseas expansion, NetDragon also directly operates a number of game titles in over 10 languages internationally since 2003. In recent years, NetDragon has emerged as a major player in the global online and mobile education space as it works to leverage its mobile Internet technologies and operational know-how to develop a game-changing education ecosystem. For more information, please visit www.netdragon.com or contact Maggie Zhou, IR Director at NetDragon at maggie@nd.com.cn.

About ARHT Media

ARHT Media Inc. creates HumaGrams™, the most believable and interactive human holograms. HumaGrams™ are generated using patent-pending Augmented Reality Holographic Technology (ARHT™), which is a scalable, repeatable and transportable form of 3D without the use of special glasses. This unique platform makes it possible for people to engage with HumaGrams™, opening up a wide range of applications from interactive retail displays, tradeshow booths, presentations, live shows and concerts. The various applications can be integrated into multiple forms of proximity and mobile marketing tactics to connect with an audience, drive sales efforts and create memorable experiences.

ARHT Media Inc. was co-founded in 2012, by Rene Bharti (Chairman), and entertainer Paul Anka (Chairman, Board of Advisors). The Company is supported by a diverse and seasoned management team spearheaded by its CEO Paul Duffy, a global entrepreneur and creator of the Digital Human Experience in online, mobile and holographic communications. The ARHT team brings decades of experience from fields including entertainment, technology, marketing and finance. The Board of Advisors of the Company include the likes of Larry King, Jason Bateman, Richard "Skip" Bronson, Michael Bublé, Carlos Slim, Irving Azoff, Dr. Simon Leung and Kevin O'Leary.

ARHT Media trades under the symbol ART on the Toronto Venture Stock Exchange.

For more information, please visit www.arhtmedia.com or contact the investor relations group at info@arhtmedia.com.

Connect With ARHT On Social Media:

Twitter: http://www.twitter.com/ARHTmedia

Facebook: http://www.facebook.com/ARHTmediainc

LinkedIn: http://www.linkedin.com/company/arht-media-inc-

This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to the Offering, the use of proceeds of the Offering; and future opportunities for ARHT. Generally, forward looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic and competitive uncertainties; regulatory risks; risks inherent in technology operations; and other risks of the technology industry. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

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