NEXTED GROUP LIMITED — Capital/Financing Update 2018

Apr 25, 2018

26 April 2018

Australian Securities Exchange Limited Via e-lodgement ASX Code ICT

iCollege Signs MOU with Birla Edutech

Key points:

• Signing of Memorandum of Understanding (MOU) with Birla Edutech Ltd., a Yash Birla Group Company to develop Vocational Training facilities in India.

• This agreement is in line with the Board Strategic Priority of increasing onshore demand through international delivery.

• The Heads of Agreement will contemplate the development of a Hospitality Centre of Excellence with Birla Edutech providing appropriate infrastructure and iCollege providing expertise as the knowledge partner.

• Significant gap in the Indian Vocational market identified by both parties with only 2% of educational enrolments in vocational colleges.

• Opportunity for students to participate studies both in India and Australia through a “twinning” arrangement.

• Birla Edutech has a footprint of over 60 educational institutions extended across India with a combined student cohort exceeding 6000 with a capacity of 50000 students.

• Education Industry in India expected to exceed USD$144 Billion by 2020; USD$97.8 Billion 2016.

• Heads of agreement and formal Joint Venture agreements to be completed within 30 days.

Alignment with strategic priorities

In February 2018, the Board of iCollege set out the clear strategic direction for iCollege following the merger with Manthano Ltd. The key strategic priorities relevant to this announcement are:

• Increase on-shore demand through international delivery;

• Pursue vertical integration; and

• Ensure current course delivery remains up to date and relevant with appropriate use of technology.

iCollege Ltd (“ICT” or “the Company”) (ASX: ICT) is delighted to announce that a formal MOU has been signed with Birla Edutech Ltd. a Yash Birla Group Company. has embarked on a journey to revolutionize education in India, by becoming educational transformers for learners across all educational segments - be it Preschool, K- 12 school, continuous education, technological or vocational education. It promises to build a uniting culture, provides rich education, develops support educational solutions and develops a strong sense of community through each of its multifaceted institutions by nurturing sensitivity towards the Society, Economy and Environment.

Birla Edutech operates in excess of 60 educational institutions across India with a combined student cohort of over 6000 holding a total capacity of 50000. During a recent trip to India the ICT Executive engaged in conversation with Birla Edutech that highlighted a significant gap in the Indian market for vocational studies. It was agreed at this meeting that a MOU would be signed leading to the swift development of a formal agreement to provide international standard training in the Vocational space in India. iCollege Managing Director Ash Katta is currently in India and will be progressing the development of the HOA during meetings in Mumbai this week.

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Additionally, Birla Edutech will work with iCollege to offer its existing institutions’ the opportunity to participate in Study Tours, Graduate programs and the ability to offer placement at the iCollege Campuses in Australia.

The MOU is not legally binding and is for the primary purpose of formalising a Heads of Agreement proceeding to a Joint Venture Agreement. A draft Heads of Agreement is already in place and expected to be formally agreed within the next 30 days with both parties extremely motivated to begin recruitment of the first cohort of students.

Initial course offerings are likely to include Hospitality and Business qualifications including practical placements. The exceptional reputation and size of the Yash Birla Group will see significant expansion opportunities, for the Joint Venture across many industry sectors both in India and Internationally.

Managing Director Ash Katta commented; “An agreement with Birla Edutech will vastly expand and fast track the opportunity foriCollege to deliver the full suite of iCollege courses collaboratively with a forward thinking, commercially astute partner, with over 80 years of operating successfully in India from a group perspective and being present in multiple business fields. iCollege could not have hoped to find a more like minded values based organisation as a partner.”

Mr. Anant Vardhan, President of the Yash Birla Group commented; “The agreement with iCollege will further enable the group to impart quality education to the youth in India and also deliver a quality practical exeperience to them. We are extremely positive about the avenues this agreement will bring forth and look forward to working with iCollege.”

Currently only 4.69% of India’s workforce is skilled with the requirement for skilled manpower growing to 109.73 Million perple by the year 2022. The Indian Government and Industry has listed International Partnerships as one of the major enablers to achieve their goals.

With the announcement of the establishment of iStudy Australia (India) this MOU will pave the way for students who are not eligible for a student visa initially to participate in Australian accredited training in India. Successful completion of an Australian qualification may provide a stronger case for the provision of a Student Visa at a later date.

iCollege continues to build on its growth commitments and strategic priorities through strong and mutually beneficial partnerships such as this agreement with Birla Edutech Limited.

Ends –

For further Information:

Mr. Ashish Katta –

Managing Director iCollege Limited +61 8 9466 9008 ash.katta@icollege.edu.au

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