NEXTED GROUP LIMITED — Capital/Financing Update 2010

Jan 28, 2010

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ASX/Media Announcement (ASX: DGI)

29 January 2010

Commentary to DGI’s Appendix 4C

The commentary herein accompanies and should be read in conjunction with Digislide Holdings Limited Appendix 4C Report, ie the cashflow statement in respect of the quarter ended 31 December 2009.

During the preparation of the Appendix 4C Report and following a more detailed review of the accounts leading up to the half year audit of the financial statements, the Directors have made several amendments to the figures disclosed in the September quarter Appendix 4C Report to reflect a more appropriate allocation of the expenditure. These adjustments have been incorporated into the year to date figures as at 31 December 2009.

Comment on these adjustments, those of significance, is made in the order the items appear on the Appendix 4C Report.

• Amounts previously recorded as salaries at item 1.2 included payments made in respect of R&D to specialist contractors. These amounts have been split out and disclosed as payments made for R&D activity at 1.2(c).

• The amount previously reflected for expenditure on advertising and marketing 1.2 (b) has been increased following a reallocation of marketing expenses out of other working capital.

• Interest and other costs of finance have been increased to reflect the interest paid component of an amount included in repayment of borrowings 1.18.

• Adjustment to item 1.9(d) reflects an adjustment to reallocate expenditure allocated to fixed assets to a prototype expense account.

• The adjustment to item 1.17, proceeds of borrowings corrects a receipt related to the IPO capital raising included in borrowing receipts.

• Repayment of borrowings has been reduced to reflect the interest adjustment referred to above relating to item 1.18 and a payment made in relation to the company’s IPO expenses referred to at item 1.20.

• The item other cash flows related to financing activities item 1.20 relates to the IPO expenses paid by the company. Refer to comment directly above.

Cash Flow Position

At the end of December 2009 the company’s cash position was $2,000. During December, the Company undertook to secure additional funding to continue its expansion into Asia and the USA, fast track the completion of products and to build inventory ahead of expected order flow from the USA. During January, funds have been received in the nature of short term loans to be repaid. This has enabled the company to continue its development.

On 22 January 2010, shareholders approved a share placement by the Company of up to 14 million shares to raise, circa, $5.0 million in new capital. The Company is currently finalising this share placement.

Digislide Holdings Limited PO Box 20 100-102 Cavan Road Phone 61 8 8262 3115 ABN 75 105 012 066 North Adelaide SA 5006 Dry Creek SA 5094 Fax 61 8 8262 8490 AUSTRALIA AUSTRALIA www.digislide.com.au

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The Company has also meet with its bankers to discuss a rolling short term facility of $300,000 that will address the lumpiness of the Company’s cash flow. This facility will enable the Company to meet payment requirements to accelerate the manufacture and delivery of inventory to overseas markets.

The Company’s bank has processed the facility based upon the security of Government receivables being funds due to the Company in respect of its Export Market Development Grant of $200,000, the South Australia Investment and Innovation Fund (“SAIIF”) grant of $1.2 million and tax refund for Research & Development of $350,000. It is anticipated that this facility would convert to a debtors financing facility backed by letters of credit in due course if required.

The Directors are confident that these funding initiatives will see the Company through to the end of the financial year and cash flow self sufficiency.

About Digislide

Digislide is an Australian based company that has developed, and continues to develop globally relevant innovative miniaturised projection technologies with broad applications.

The tactical focus is on targeting products/applications that can be embedded into a range of mobile and/or hand held communication devices, such as mobile phones, PDA’s and notebook computers. The technologies have wide patent protection and have already received international acclaim; winning several awards in important international technology arenas.

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Further information contact:

Hean Siew

Company Secretary

m: 0432 654 331

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