EXCITE TECHNOLOGY SERVICES LTD — Capital/Financing Update 2016

Jul 13, 2016

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ASX ANNOUNCEMENT | COVATA LIMITED

Successful EGM completes recent AU$13.2m Capital Placement

SYDNEY – 14 July 2016 – Covata Limited (ASX: CVT) (Covata or the Company) has announced the successful outcome of the EGM held today in Melbourne.

• The meeting ratified the November placement of $6.9m to Fidelity and the recent capital raising of $13.2m.

• Acknowledgement of shareholder support for the recent participation of the Company’s two largest shareholders, Fidelity and TPG Telecom, for approximately 50% of the placement.

• The balance sheet of the Company has been substantially strengthened and underpins current negotiations related to UK Government and the ‘Prime Contractor’ deals.

• ‘Future State’ phase with Prime Contractor now actively underway with key pieces of work completed in July.

The capital placement provides the financial foundation necessary to support the progress underway with the multi-national aerospace and defence prime contractor (Prime) referred to in the last quarterly update. With key pieces of work now complete, the second stream of work outlined in the last quarterly update, known as ‘Future State,’ is in the advanced stages of approval between the Prime and the Customer. These streams are part of a multiyear program and formal approval of these streams triggers the Covata licensing negotiation, which the Company expects to be substantial. Management acknowledges this has taken time to progress however this is not unusual given the size of the contract between the Prime and Customer.

Covata CEO Mr Trent Telford said, “First and foremost, we would like to thank our shareholders for their support in this EGM and across the board. We have been building to this quarter (Q1FY17) and next. I firmly believe the acquisition of long term, blue chip revenue deals, backed by what is now a very strong balance sheet, will place Covata in a prominent position against industry comparables. Each quarter we continue to make significant progress. We are confident of delivering material signed TCV (total contract value) licensing deals and associated booked revenue in the coming quarters. I look forward to updating shareholders with regards to our global business particularly pertaining to, Cisco, FCOS and the UK Government Prime deal.”

©2016 Covata Limited or its affiliates

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The Company will provide its in-depth quarterly business update alongside the Appendix 4C to be released at the end of the month. Additionally management will hold its end of financial year investor call post announcement, dates to be advised.

Results of General Meeting

A General Meeting of shareholders of the Company was held at the Waratah Room, Adina Apartment Hotel Melbourne, 189 Queen Street, Melbourne, Victoria at 10.00am (AEDT) today.

Resolution 4B, relating to a proposed issue of shares to Mr Charles Archer, was withdrawn by the Company immediately prior to the General Meeting. All resolutions put to the meeting were passed unanimously on a show of hands.

In accordance with ASX Listing Rule 3.13.2 and section 251AA of the Corporations Act 2011 (Cth), details of the resolutions and proxies received for the meeting held today are set out in the proxy summary below.

	RESOLUTIONS:	For	Against	Abstain	Undirected(all held byChair)
1	Ratification of prior issue of shares –Fidelity International	66,601,016	5,666,960	87,102	1,837,732
2	Ratification of prior issue of placementshares	66,324,541	5,665,102	50,100	1,804,399
3	Approval for issue of placement shares	62,758,041	8,997,602	284,100	1,804,399
4A	Approval for issue of shares to TrentTelford	62,054,146	9,926,039	36,012,652	1,837,732

Media and Investor Relations:

Nikki Parker

Vice President Growth and IR

Covata +1 (571) 353-4273

nichola.parker@covata.com

©2016 Covata Limited or its affiliates

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About Covata

Covata enables true ownership and control over your data in the cloud and over mobile services. We deliver data-centric security solutions without compromising simple usability, providing true end-to-end security. Your data is always protected wherever it may travel – inside your network, beyond the domain, to mobile devices and to the cloud – with granular access controls that extend to external users, view-only restrictions, real-time revocation and complete visibility and auditability.

Own Your Data, control your data and choose where it is stored – with complete assurance that it is protected and secure. For further information please visit Covata.com.

©2016 Covata Limited or its affiliates