MCS SERVICES LIMITED — Capital/Financing Update 2017

May 4, 2017

5 May 2017 ASX and Media Release

Company Update

MCS Services Limited (ASX: MSG) (MCS) (the Company) is pleased to advise that the WA Department of Transport has today confirmed a 12 month extension from 1 July 2017 to the company’s existing security contract at Hillary’s Boat Harbour.

The extension includes a CPI rate increase. Hillary’s Boat Harbour is a major leisure and retail facility and one of WA’s top metropolitan tourism attractions. The company has held the Hillary’s contract since 2006.

The Company has been unable to proceed as expected with the share cancellation and option issue as approved by shareholders at the general meeting held on 26 November 2016. As referenced in the Company's announcement of 18 April 2017, the Company has advised Mr Boardman of its intention and willingness to complete the proposed transaction. However, Mr Boardman has confirmed that he no longer considers himself to be bound by the transaction documents. While the position remains unclear, the Company intends to take all necessary steps and appropriate legal action to enforce its rights in relation to this matter.

Jonathan Asquith

Company Secretary

About MCS Services

MCS Services provides security services at major commercial property sites and retail shopping centres throughout the Perth metropolitan area and regional country areas of Western Australia. These security services include mobile patrols and response vehicle services. In addition, MCS provides electronic security services including the design, supply, installation and commissioning of security alarms, CCTV, biometric and access control systems to commercial, industrial and domestic sectors.

For further information, please visit the MCS website www.mcssecurity.com.au