Seven Stars Cloud Provides Update on NextGen Exchange Group

8/17/17

Seven Stars Cloud Group, Inc. (NASDAQ: SSC) ("SSC" or the "Company" or "Seven Stars Cloud"), today provided an update on NextGen Exchange Group (NextGen").

After passing initial testing, SSC's NextGen which will be the backbone of SSC's Tokenization and Exchange Platform (and will fall under SSC's 2nd Engine, Digital Finance Solutions) will be launching in Q4 2017. As a reminder, SSC announced the purchase of 51% of NextGen Exchange Group on June 12, 2017.

SSC's four monetization methods for asset-backed securities ("ABS") are: 1. ICO: tokenization or token issuance; 2. Index issuance and exchange; 3. ETF issuance and exchange; 4. Derivative issuance and exchange. What makes these exchanges different and the first of their kind, is that they combine all of the following: they are FINRA- and SEC-regulated, the products are developed using Big Data & Artificial Intelligence and finally, all ABS products are backed by real assets from industries that are partners and users of SSC's 1st Engine, VPaaS.

Additionally, SSC today announced a strategic investment in the Delaware Board of Trade Holdings, Inc. ("DBOT") (http://dbottrading.com/). DBOT, is an approved and licensed FINRA- and SEC-regulated electronic trading platform with operations in Delaware. NextGen is powered by DBOT's platform, trading system and technology.

Mr. John F. Wallace, the former Chairman of the Philadelphia Stock Exchange, Chairman of the Philadelphia Depository Trust and Vice Chairman of NASDAQ OMX PHLX is Chairman of DBOT and serves as Executive Chairman of NextGen.

About Seven Stars Cloud Group, Inc. (http://corporate.sevenstarscloud.com/)

Seven Stars Cloud Group, Inc. (NASDAQ: SSC) is aiming to be a leading Intelligent Industrial internet (3I) platform, creating a fintech-powered, supply chain solution simplified for commercial enterprises. There are 2 Engines that drive our business platform: 1. VPaaS - Supply Chain Management for key industry sectors and leaders including but not limited to Big Commodities, Cross-Border Trade, Consumer Electronics & Energy; 2. Digital Finance Solutions - Supply Chain Finance underwritten by our Global Cornerstone Funds and Tokenization and Exchange Platforms, which include FINRA and SEC-regulated: Index Exchanges, Initial Coin Offering / Tokenization, ETFs and Derivatives. Both Engines and their various arms will run on 'BASE' technology and infrastructure (Blockchain, Artificial Intelligence, Supply Chain & Exchanges) to power a closed trade ecosystem for buyers and sellers designed to eliminate transactional middlemen and create a more direct and margin-expanding path for principals.

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