ADSLOT LTD. — Interim / Quarterly Report 2011

May 24, 2011

Webfirm Group Limited Quarterly Update Q3 FY 2011

The information contained in this presentation is given in good faith and has been prepared from information believed to be accurate and reliable. The information presented does not take into account your individual financial circumstances and it is not designed to be a substitute for specific financial or investment advice or recommendations and should be relied upon as such. You should consider talking to your financial adviser before making an investment decision. So far as the law allows, Webfirm Group Limited excludes all liability for any loss or damage whether direct, indirect or consequential.

This presentation includes forward-looking statements that are based on information and assumptions known to date and are subject to various risks and uncertainties. Actual results, performance or achievements could be significantly different from those expressed in, or implied by, these forward-looking statements. Such forward-looking statements are not guarantees of future performance. They involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of Webfirm Group Limited, and which may cause actual results to differ materially from those expressed in this presentation.

Automate. Control. Optimise.

What does Adslot do?

• Adslot allows media publishers to automate , control and optimise their premium advertising inventory and listings, increasing their yield , while simultaneously introducing automation that improves internal efficiencies, decreasing sales and administration costs.

Why are customers choosing Adslot?

• Additional and new revenue from the Adslot platform combined with significant sales cost savings fall straight to the bottom line , which means increased profits and a larger valuation for their business.

• How does Adslot work?

• The Adslot platform creates market tension through the introduction of a competitive premium inventory sales process using patented auction technology and by automating the end to end sales process.

Adslot’s progress so far

• The Adslot platform works... and works extremely well

• We've successfully increased yield and reduced costs for our existing clients.

• One of Adslot’s core products has achieved in excess of 100% yield uplift on previous year’s revenue for a client*.

• Client surveys also show we have reduced their sales and administration costs and improved internal efficiencies by up to 60%.

• We're sticky

• It takes time to implement, but from a technology perspective, we are becoming deeply embedded within our clients’ businesses.

• All . clients are planning the implementation of further products

• Includes organic growth from increased market demand, over the same period year on year

Revenues will come… in time

• We have so far implemented only a small number of products with each of our clients due to the significant internal client process change required, which means:

• we will not see the full product suite implemented with existing clients until late FY2012 and;

• we will start to see meaningful revenues increasing from those clients through FY2012 and beyond.

• The model will deliver strong revenues and profitability on a clientby-client basis from the second year following initial implementation.

• In most circumstances, Adslot receives a percentage of all revenue on the platform and in some cases, a larger percentage of uplift created .

• This will ultimately deliver strong profitability , but will take time to build.

Typical Customer Evolution

Multiple products for individual customers

==> picture [555 x 348] intentionally omitted <==

----- Start of picture text -----

Third Product
Launched again
increasing the
clients engagement
Second with Adslot
Product
Revenue Launched
On
Platform
First Product
$
Launches
following 2-4
month
implementation
Time
6 Months 12 Months
----- End of picture text -----

For a real estate portal, product rollout may develop as follows: 1. Suburb Sponsorship 2. Premium Listings 3. Direct to small advertisers automation

Costs will be recovered

• We have made a significant investment in becoming deeply embedded in our client’s businesses; but…

• These costs should be recovered within 18 months on a client-by-client basis, and then client profitability will build quickly after that.

• We expect strong margins once implementation of full product suite is complete with each client.

Adslot Financials

• As our clients migrate more of their products to the Adslot platform we will see Adslot revenue grow, particularly in year two of each client’s engagement. We do not anticipate seeing significant revenue from Adslot in this current financial year.

• We anticipate Adslot’s divisional revenue for FY2011 will be in the order of $850K

• We expect our costs to increase and continued losses in FY2012 as we continue our rapid roll-out in to other geographic and vertical markets, but anticipate steadily growing revenues during the .

• same period

Classifieds Product Evolution

• In August 2011, SeLoger will launch the first full product suite implementation , including the direct, end-to-end, self-serve ad sales platform which incorporates all three proprietary technologies acquired by Webfirm in 2010:

• Adslot (yield optimisation) ;

• Adbuilder (DIY ad creation); and,

• Adimise (ad serving) .

• It is expected the investment in this complete end-to-end platform will be able to be sustainably leveraged and sold to many other clients with a significant reduction in the time-frame for future customer implementations.

Future Market Strategy

• Having achieved strong product validation within the Online Classifieds Display market, we are investigating expansion into other media markets within the next 12 months, which may include:

• Other Online Publishers (outside of Classifieds)

• Television

• Mobile

• Other traditional media, Print, Magazine, Outdoor, etc

• It is the growth into these markets that will see Adslot continuing to play a significant role in changing the way advertising is bought and sold globally.

Adslot Quarterly Summary

• Since December 2010 Adslot has launched three customer platforms for carsales.com.au, realestate.com.au and realestate.co.nz .

• Adslot’s first European client SeLoger, France’s largest online real estate classifieds publisher, will launch their sales platform in August 2011 .

• A sales and customer support office for European customers has been established in London .

• Adslot’s range of products for classifieds publishers has now been expanded to include sales automation for the actual classifieds listings and not just the advertising around the listings. This is a significant product evolution for Adslot and for our future revenue .

• potential

Customer Activity – Realestate.com.au

• Adslot’s first platform for realestate.com.au went live in April 2011

• The current platform enables Real Estate agents to purchase Suburb Sponsorship (Victoria only) via the Adslot patented auction system

• The platform will be rolled out Nationally in August 2011

• 2 more

• We anticipate launching products for REA in the next 12 months, increasing ROP*

Example Only

• Revenue On Platform

Customer Activity – Realestate.co.nz

• realestate.co.nz chose Adslot to automate the sale of premium listings . The platform went live in . April 2011

• Stage two of the platform rollout will allow the real estate agents to design and customise their premium listings using Adslot’s . Adbuilder technology

Example Only

• The premium listing product has been added to the Adslot platform as a core product available to other customers.

Customer Activity – SeLoger France

• French real estate agents will soon have a way to purchase sponsorship of districts and regions on SeLoger’s website via Adslot.

• The specification work on the self-serve sponsorship platform is complete.

• The end-to-end platform will include Adbuilder and will be adserved using Adslot’s Adimise technology. This exciting solution is expected to launch in August 2011.

New Business Activity

• Adslot’s push into Europe was rewarded with the signing of France’s .

• largest real estate portal SeLoger

• Similar discussions are being held with classifieds portals across Europe and the UK . This sales effort will increase with the upcoming appointment of a London-based General Manager of Sales.

• Business development also continues in the Asia Pacific region. The Asian market is at an early stage of growth. Adslot’s strategy is to be integrated with the region’s largest portals as the shift from print media to online media develops over the next few years.

• Australia continues to be Adslot’s product development market. The company is engaged in early discussions with potential customers outside of the online classifieds sector to extend our early successes into other forms of media such as television, online video and other forms of traditional and new media.

Division

Webfirm Division focus is changing

• The website development market for small and medium size businesses (SME’s) is highly competitive and Webfirm Division losses to date have been driven by its inability to profitably compete in bespoke website development.

• Conversely, the search and marketing services business that includes search engine optimisation services , search engine marketing (paid search advertising), hosting and social media marketing is profitable and forms the basis of future alignment with Adslot.

Will Align More Closely with Adslot

• Over the past few months the Webfirm Division has been reducing its costs associated with website development, and focusing heavily on its new core offerings of search, advertising and marketing services to its 2,000 existing clients.

• We expect revenue from the Webfirm division for FY2011 to be in the order of $3.6m

• Over the next few months the core focus will be to align the business of Webfirm more closely with Adslot.

Summary

• Webfirm Group is transitioning from being a labour-intensive, feefor-service business (Webfirm), to a product and technologydriven, revenue-share business (Adslot).

• As a result of this transformation, Webfirm division revenues have decreased, but these will be offset by increasing Adslot revenues in mid to late FY2012 .

• Our intensive upfront investment in product development, will provide greater returns as more clients implement more products, enabling many iterations and versions of the same core technology.

• Becoming deeply embedded in our clients business ensures a robust future annuity stream and long-term financial viability of the business.

Summary

• We have sufficient cash to see us through to profitability, and we do not intend on raising any more money to execute on our current strategy.

• Operating within our current strategy sees us with a solid prudential cash buffer , which we will use to develop into new markets or for value accretive acquisitions.

• Cash at bank (31 March 2011): $19.5M

• • Current share price: $0.11*

• Total shares on issue: 678,062,536*

• Market capitalisation: approx. $75M*

• *As at market close, 24 May 2011

Contacts

Media

David Burden CEO david.burden@webfirmgroup.com

Webfirm Group Limited (from the 30[th] May 2011) Level 2, 85 Coventry Street South Melbourne, Vic 3205 Ph: 03 8695 9100

Investor Relations

Brendan Maher CFO & Company Secretary brendan.maher@webfirmgroup.com

www.webfirmgroup.com www.adslot.com www.webfirm.com