FIRSTWAVE CLOUD TECHNOLOGY LIMITED — Capital/Financing Update 2017

Feb 22, 2017

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23 February, 2017: ASX Company Announcements Platform

FirstWave confirms international expansion with new telco partnership and first international contracts with Telstra Global

Highlights:

• Agreement secured with India’s Bharti Airtel data centre division Nxtra Data

• FCT’s Cloud Security Platform made available to Nxtra Data’s 7 data centres in India and Airtel’s Enterprise & Government customers – a large addressable market

• India’s Cloud Security and Cloud System Services market is witnessing explosive growth – growing at 34% CAGR and valued at USD$1.8 billion by 2020*

• First international contracts secured with Telstra Global in Singapore and Hong Kong

Leading Australian Cloud Security technology company, FirstWave Cloud Technology Limited (ASX:FCT) (“FirstWave”) is pleased to confirm its expansion into international markets through a new agreement with Nxtra Data Limited (“Nxtra Data”), the data centre managed services business of India’s largest telecommunications provider Bharti Airtel, and the signing of the first two contracts with Telstra’s international business, Telstra Global.

Nxtra Data Agreement

FirstWave will make its telco grade Security as a Service ( SaaS ) platform available to Nxtra Data’s seven data centres in Mumbai, Chennai, Bangalore, Pune, Manesar, Noida and Bubhaneshwar. FirstWave’s SaaS platform will also provide Nxtra Data with an incremental, high-margin revenue stream from sales to its Enterprise and Government customer base under their own brand.

Bharti Airtel is an excellent partner for FirstWave and provides a perfect springboard for future growth in the region. Airtel has a presence in 20 countries across Asia and Africa, and is 33.3%-owned by SingTel.

This agreement is consistent with FirstWave’s international growth strategy of partnering with leading telecommunication companies, data centre operators, and cloud service providers to enter new markets and make its leading SaaS platform available to enterprise grade Corporate and Government departments globally.

FirstWave will deploy a team to India next month to begin implementation with first revenue expected to be booked in Q1 FY2018. Capital expenditure for the set-up of operations in India is minimal for FirstWave.

FirstWave’s investment in capability to rapid provision of security services, at volume, with high degree of automation means FirstWave can deliver services in a profitable manner to large volume, low Average Revenue Per Unit ( ARPU ) markets such as India.

The agreement was executed after an extensive and rigorous period of review and analysis of FirstWave’s SaaS platform by Nxtra Data. This process has given Nxtra Data and Bharti Airtel the confidence to sell FirstWave’s market-leading cloud security platform to its customer base.

Organisations in India are now embracing cloud security, and FirstWave’s platform will be marketed under one of India’s most trusted and respected brands to what is a huge addressable market – India’s cloud security and cloud

FirstWave Technology | Level 10, 132 Arthur St, North Sydney NSW 2060 | Telephone: (02) 9409 7000 | firstwave.com.au

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system services market is growing very strongly at a Compound Average Growth Rate ( CAGR ) of 34% and will be valued at USD$1.8 billion by 2020*.

First new international customers secured through Telstra Global

FirstWave is also pleased to report that it has secured the first international customers with Telstra Global – cloud web security services for one of Australia’s Big Four banks for its Singapore operations, and for the Hong Kong operations of a leading UK publicly listed building products group. Revenue from these contracts will be booked in FY2017 and beyond, in line with the term of the contracts.

Management Commentary

FirstWave’s Managing Director, Steve O’Brien said: “This agreement with Nxtra Data is a major step forward for FirstWave and in line with the Board’s commitment to establish the Company’s international footprint in FY2017. We have delivered on this key objective and confirmed that we can replicate our Australian telco offering to a wider, global telco market. It is also firm validation of the quality and integrity of our cloud security platform.”

“We have been working collaboratively with Nxtra Data for a number of months to cement this agreement and they have every confidence that FirstWave’s SaaS platform is world class, and one of the best available globally. Nxtra Data have a large and growing Enterprise and Government customer base which we will actively target to strengthen our recurring revenue streams.”

“Whilst the data centre installation is pleasing, the real growth opportunity is marketing our security services under the Bharti Airtel brand to their customer base – a very large addressable market in India. The Indian government has expressed a desire to become a non-paper based financial system faster than any other country. This initiative supports the obvious security outcomes that will follow."

“As well, with Bharti Airtel having a presence in 20 countries in Asia and Africa, the opportunity to expand beyond India is promising. We look forward to reporting on our growth in India in what is the first stage in the Company becoming a global player in cloud security services.”

“Also encouraging is the new enterprise contracts with Telstra Global. We are now in the position to leverage our products into other Telstra Global markets and we see considerable momentum here. Telstra Global represents another international growth channel for FirstWave. With this increase in contracts in Asia, we are targeting to open an office in Singapore so we can actively sign more contracts there and across Asia.”

- ENDS -

For further information please contact:

Steve O’Brien Managing Director +61 2 9409 7000

For media and investor inquiries: Ben Jarvis, Six Degrees Investor Relations : 0413 150 448

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Follow FCT on its Twitter investor relations feed: https://twitter.com/Firstwave_FCT

About FirstWave Cloud Technology

Australian cloud technology company, FirstWave, operates a technology business in the burgeoning cloud based IT managed security services market, having created an intelligent carrier grade cloud security platform for business. First Wave has delivered Software as a Service (SaaS) solutions since 2004 in a form similar to what we call “cloud” today and has a long standing relationship with Telstra. FirstWave offers a comprehensive cloud security and analytics technology solutions suite that, along with advanced mail, web & NGFW content controls, now offers unified, integrated x-threat vector advanced malware protection technology solution for any business or enterprise moving to or operating in the cloud. Over 300 customers already trust FirstWave including the largest Australian financial institutions, state and federal government, utilities, ASX listed and private companies in the mining and retail sectors. www.firstwave.com.au

FirstWave Technology | Level 10, 132 Arthur St, North Sydney NSW 2060 | Telephone: (02) 9409 7000 | firstwave.com.au

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About Nxtra Data Limited

Nxtra Data Limited formed to run Bharti's Data Centre Managed Services business. Nxtra now manages 7 Tier III/+ & ISO 27001 Certified Data Centres at Noida, Manesar, Mumbai, Chennai, Bangalore, Pune, Bubhaneshwar comprising approx. 200,000 sq. ft. of floor space.. Nxtra offers an integrated portfolio of data centre managed services including Co-location, Managed Services, Managed Hosting, Managed Back-up & Storage, Managed Security, Virtual Compute and Cloud with both Domestic and International network connectivity. To know more visit www.nxtradata.com

*Source: Gartner 2015

FirstWave Technology | Level 10, 132 Arthur St, North Sydney NSW 2060 | Telephone: (02) 9409 7000 | firstwave.com.au