Urban Tea Inc. (the "Company", "we" or "Urban Tea") (NASDAQ: MYT), a premier retailer of specialty teas and baked goods based in Hunan, China, announced today that it has completed the acquisition of 51% equity interest in Hunan 39 Pu Tea Co., Ltd. ("39 Pu Tea"), a limited liability company organized under the laws of the PRC, and has entered into a set of variable interest entity agreements with 39 Pu Tea through Mingyuntang (Shanghai) Tea Co. Ltd., the Companys wholly foreign owned subsidiary organized under the laws of PRC.

Founded in April 2011 and headquartered in Hunan, China, 39 Pu Tea is engaged in product research and development, tea production, distribution, and tea cultural heritage projects. Its primary business covers the sale of loose-leaf teas and tea sets, management of tea culture clubs, holding tea ceremony trainings, and other tea-related product development. 39 Pu Teas current major sales channels are through wholesale, retail, franchises, e-commerce marketplaces, and other storefronts.

Mr. Long Yi, Chief Executive Officer of Urban Tea commented, "The acquisition of 39 Pu Tea is an important strategic step of expanding our tea business operations and diversifying our sales channels; it will also help provide the consistent supplies of tea for our corporate brand stores of Your Ladyship Tea and Buoyance Manor. Upon the completion of the acquisition, the Company will be able to consolidate 39 Pu Teas financial statements, resulting in an increase to the Companys assets and operating income. The acquisition will also improve and support the Companys existing business line of milk tea and bakery products, the brands marketing, personnel training, and store operation. By centralizing the kitchen production management, warehousing and distribution system, the Company expects to have a solid foundation to establish an enhanced overall production chain for rapid future growth."

Mr. Dean Hu, CEO of 39 Pu Tea, said, "It is a great honor for 39 Pu Tea to be a part of the public company, Urban Tea. The completion of this acquisition will strengthen our brand recognition and our ability to drive growth together with Urban Tea. As 39 Pu Teas management, we are confident in Urban Teas strategic planning and will support our business partner with continuous contributions."