ION VIDEO LTD — Capital/Financing Update 2017

May 21, 2017

ASX Announcement 22 May 2017

ASX: LNU

LINIUS & IBM COLLABORATE TO PROMOTE & SELL THE LINIUS VIDEO VIRTUALIZATION ENGINE[TM]

IBM and Linius to jointly market and promote the Linius Video Virtualiza9on Engine[TM] , including building onto the IBM Bluemix plaAorm

Linius Technologies Limited (ASX: LNU) and wholly owned subsidiary, Linius Solu=ons Pty Ltd (Linius) , are pleased to announce the commencement of a collabora=on project with IBM to promote and sell the Linius Video VirtualizaJon Engine[TM] (Linius VVE) , including building onto the IBM Bluemix plaMorm , to IBM’s extensive network of corporate clients and beyond in Linius’ target market sectors.

This collabora=on project, between Linius Solu=ons and IBM, provides for the joint promo=on and marke=ng of the Linius VVE (including presales support) and submission of proposals for selling the Linius VVE to targeted customers as a standalone or integrated offering with IBM products.

Linius has been accepted as an IBM Business Partner in PartnerWorld, IBM’s channel program.

Bluemix weaves together services, infrastructure and data to help businesses bring their ideas into produc=on quickly.

1, consis=ng of huge data files which are cumbersome and sta=c. The Linius solu=on virtualises videos, exposing the internal data in much the way that Big Data virtualises the world’s text. As a result, organisa=ons can more easily and quickly add, splice and merge videos as needed. For example, a cable TV company will be able to deliver personalised TV ads, whilst a search company could return deliver hyper personalised video search from within videos.

Linius will work with IBM technology solu=ons to enhance the Linius VVE with IBM products and then promote and market these across all four of Linius’ target market sectors. This will include virtualisa=on hosted on the IBM Cloud, personalised adver=sing, an=-piracy, security and surveillance.

Chris Richardson, CEO of Linius, commented:

commercialisa=on plan. IBM has exis=ng rela=onships with the who’s who on our poten=al client target list.

“IBM Bluemix provides a great technology environment to build out the virtual video ecosystem. The Bluemix APIs offer a flexible development plaRorm and addi=onal func=onality such as video search and blockchain, and enhance our capabili=es to meet the needs of our ver=cal markets.

Capital Structure

Shares quoted on ASX – 2 9 4.0m Total shares on Issue – 679.2m Market Cap @ 4.6c – $ 31.2m Unlisted Options – 73.0m

Corporate Directory

Christopher W. Richardson Executive Director, CEO

Gerard Bongiorno Chairman, Non-Executive Director

Stephen McGovern Non-Executive Director

Stephen Kerr Company Secretary, CFO

Key Definitions

Video Virtualization Engine™ is Linius’ patented software that turns existing Internet videos into virtual v i d e o f i l e s , e n a b l i n g n e x t generation TV.

Showcase Partners are Linius

channel to market partners, and assist with product development and market validation.

Digital Video Value Chain is the suite of technologies that enable getting a “video” from the camera to the screen.

Transcoding is the process by which video files are converted to different formats. The process helps to support low bandwidth connections and lets video conform to the unique constraints of various mobile devices.

Contact Details

Level 40, 140 William Street Melbourne VIC 3000 Tel +61 3 9607 8234 www.linius.com

1 Source (1) The Ze^abyte Era — Trends and Analysis – Cisco 2 June 2016

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“Also, IBM has the resources and experience to assist us in deployment and management of our commercial solu=ons and the infrastructure to scale for global distribu=on.”

Anthone Withers, Head of SoQware as a Service, IBM Australia and New Zealand, said:

“I feel Linius could be a game changer in the world of video, from personalised adver=sing to search and security. We’re now ac=vely working with Linius to iden=fy and market the technology to target customers.”

About IBM Cloud

For more about IBM Cloud, visit: h^p://www.ibm.com/cloud-compu=ng.

About Linius Technologies Limited

Linius Technologies Limited (ASX:LNU) is set to revolu=onise the world of video. The Linius Video VirtualizaJon Engine™ has cracked the code of content intelligence and created the next evolu=on of video streaming.

easily manipulated on the fly, in order to deliver an enhanced, custom experience for both broadcasters and end-users in any way imaginable, and some as yet to be imagined.

Linius has the poten=al to transform many market sectors, and is ini=ally focused on:

1. Delivering personalised adver=sing solu=ons for broadcasters

2. Video security and reduced piracy

3. Enhancing search engine mone=sa=on

4. Security-service applica=ons

Linius’ patented Video Virtualiza=on Engine™ cuts costs and boost revenues across the mul=-billion dollar video industry.

For more informaJon, please contact:

Chris Richardson

Linius Technologies Limited

T: +61 3 9607 8234 Press and Media: pr@linius.com Investors: ir@linius.com General: info@linius.com