DATAWORKS GROUP LIMITED — Capital/Financing Update 2019

Apr 28, 2019

29 April 2019

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IXUP partnerships and product update

IXUP Limited (ASX: IXU) (“IXUP” or the “Company”) , a technology company that secures data analytics, today announces significant new features to its market leading technology and provides an update regarding the Company’s partnership and reseller programs.

Highlights

• Partnership program with Tech Mahindra

• Agreement with Deloitte to resell IXUP’s data analytics platform

• Development of the Company’s Microsoft relationship

• Release of on-demand software-as-a-service (SaaS) distribution model

Partnership agreement with Tech Mahindra

IXUP continues to accelerate growth through channel partners, with the Company signing a partnership agreement with Tech Mahindra to establish a data analytics environment for secured multi-party collaboration. The agreement will allow Tech Mahindra’s clients to leverage IXUP’s technology to connect multiple data sets in a fully encrypted analytics environment. The environment will be hosted by Tech Mahindra, and powered by IXUP’s technology.

Tech Mahindra Senior Vice President and Country Head Jeff Ferdinands said: “As part of our TechMNxt charter, we are focused on creating a partner ecosystem to provide next generation technologies-enabled solutions and services to our customers globally. Tech Mahindra’s collaboration with IXUP will allow us to offer our customer base unparalleled secure data analytics. By leveraging this offering, they will be able to encrypt and connect data from multiple sources, delivering secure insights within governance and compliance frameworks.”

Tech Mahindra is a USD$4.9 billion company with over 118,000 professionals across 90 countries, helping over 930 global customers, including ASX 200 companies. The combination of Tech Mahindra’s technology services with IXUP’s advanced analytics solutions will help organisations gain the intelligence and agility needed to thrive in the modern business world. The partnership provides strong validation of IXUP’s technology and signals significant progression in the Company’s growth strategy. The Company will continue to update the market as the partnership progresses.

Reseller agreement with Deloitte

The Company has also signed a reseller agreement with Deloitte Touche Tohmatsu Australia (Deloitte). IXUP and Deloitte intend to jointly offer the secured data analytics capabilities of the IXUP platform with Deloitte’s consulting and market experience. This will provide clients with a single access point for advanced analytics service offerings.

IXUP CEO Peter Leihn said: “We are thrilled to work with Deloitte and combine our unique data analytics technology with Deloitte’s respected consulting practice. Data analytics has become an essential component of technology. Like anything of value, data needs

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protecting. Our solution provides clients with an opportunity to drive enhanced insights from their data, securely and responsibly.”

Deloitte Business Algorithms Partner, Tal Morgenstern said: “ We look forward to working with IXUP to help our clients better realise the potential of data. In a digital world, successful innovation requires a close relationship between business and technology. Working with IXUP, we aim to enhance the relationship between technology and data to help clients drive better business outcomes.”

Ongoing partnership programs

IXUP’s ongoing partnerships with Servian and Finity continue to generate strong awareness and demand for the Company’s secured data technology and IXUP is committed to strengthening these relationships.

IXUP CEO Peter Leihn said: “Our partnership programs and reseller agreements provide us with an excellent platform for growth. IXUP’s new agreements with Tech Mahindra and Deloitte demonstrate increased momentum in the market with the Company’s innovative technology continuing to attract strong interest from global organisations. Our strategy over the short-term focuses on increasing market penetration and expanding our partner network to provide increased solutions to organisations looking to analyse their data in a secured and governed environment.”

Strategic relationship with Microsoft

IXUP’s strategic relationship with Microsoft continues to strengthen, with the platform now implementing Microsoft SEAL, a homomorphic encryption library developed by Microsoft Research. This significantly improves IXUP’s data analytics platform, with the Company one of the first to offer this post-quantum security feature.

This is the first step towards a more in-depth collaboration that will allow searches to be performed on data that is in-use and ensures nothing is ever revealed during the process, offering a more secure platform. This marks a significant advancement over current forms of encryption used by IXUP competitors, which secure data while it’s stored but not when it is being used.

IXUP CEO Peter Leihn said : “Homomorphic encryption is a key piece in the future data analytics value chain, and we are thrilled to bring Microsoft SEAL to our clients. This level of encryption will enable parties to confidently share and analyse data on the IXUP platform, secure in the knowledge they are fully compliant with data governance regulations as well as protected against digital threats. Any organisation can use our platform to run large sets of data analytics computations, rapidly and safely.”

Principal Researcher at Microsoft Research Kristin Lauter said : “ We are extremely excited to see IXUP adopting Microsoft SEAL in their data analytics platform. Microsoft SEAL is a homomorphic encryption library that allows computations to be performed directly on encrypted data, unlike traditional encryption techniques that require decryption before any data manipulation can be done. The results of such encrypted computations remain

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encrypted, so any service built on Microsoft SEAL cannot learn either the inputs or the outputs of the computations it performs.

Homomorphic encryption is a very exciting and innovative field that opens a new world of possibilities in terms of trust and privacy, removing barriers to collaboration in AI development and adoption, and we are looking forward to seeing the impact this advance in cryptography will have on IXUP’s customers moving forward.”

SaaS distribution model released to market

Investment in innovation and technology leadership continues to build deeper competitive advantage following the launch of IXUP’s SaaS distribution model, released to the market on 29 April 2019. IXUP has extended its go-to-market strategy through the introduction of two SaaS offerings - IXUP Light [ TM] and IXUP Expert [ TM] – which are now being offered in addition to the Company’s Platform-as-a-Service (PaaS) model, now described as IXUP Enable [ TM] .

Deployed through Microsoft Azure, the SaaS model empowers clients to use IXUP’s technology in ways that are convenient to them, allowing quick and easy access to the platform at a reduced deployment cost to IXUP. The SaaS distribution model is expected to drive recurring revenue and will address new and expanded market opportunities.

IXUP client Finity Consulting has responded amending their licensing agreement to transition from PaaS to the new SaaS offering effective immediately. As an early adopter Finity will pay an annual subscription fee of $45,000.

IXUP CEO Peter Leihn said: “ The SaaS offerings bring a new approach to our business model and will benefit our clients with more agile and flexible solutions. The SaaS model provides IXUP with an opportunity for growth in the small to medium enterprise space while larger enterprise clients are indicating a continued preference for PaaS deployments. The model can be adapted to suit any scenario, making the cost-utility very attractive to any enterprise.”

With the global SaaS market expected to attain a market size of US$185.5 billion by 2024[1] , IXUP’s online platform provides significant opportunity for growth as companies increase the use of SaaS technologies.

-ENDS-

Investor enquiries: Philippa Daly, FCR Tel: +61 (02) 8264 1008 p.daly@fcr.com.au

About IXUP

IXUP Limited (pronounced ‘eyes up’) is a listed technology company (ASX: IXU) that secures data analytics and delivers insights within a governance framework. The platform

1 KBV Research, Global Software as a Service Market, December 2018.

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encrypts and connects data from multiple sources, solving the problems of data loss and misuse by enabling data owners to remain in complete control of their data. IXUP was listed in 2017. For more information visit www.ixup.com

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