OPENLEARNING LIMITED — Capital/Financing Update 2020

Apr 28, 2020

ASX Announcement | 29 April 2020

Heriot-Watt University Malaysia selects OpenLearning to Design a World-Class Online Foundation Studies Program

Highlights

• OpenLearning has signed an agreement with Heriot-Watt University Malaysia to redesign the first semester of its Foundation Studies program that will commence in May 2020

• Heriot-Watt is one of the UK's leading universities with five campuses across the world as well as 53 Approved Learning Partners and over 29,000 students studying both online and offline

• Heriot-Watt selected OpenLearning to design a high-quality online learning experience that will transform the way the Foundation Studies program is delivered online and on-campus

• Heriot-Watt will pay OpenLearning a once-off Learning Services fee of A$289k (ex GST) for the development of 10 courses, which will be carried out in Q2 and Q3 2020

• The agreement includes a 1-year licence of the OpenLearning platform and should the program continue in 2021, Heriot-Watt would become a paying SaaS client

Sydney, Australia, 29[th] April 2020: Higher education software as a service (SaaS) company OpenLearning Limited (ASX:OLL) (‘OpenLearning’ or ‘the Company’) is pleased to announce that it has signed an agreement with Heriot-Watt University Malaysia (‘Heriot-Watt’) to redesign the university’s Foundation Studies program into a world-class online learning experience.

Increasing focus on high quality online learning amidst COVID-19 lockdown

Heriot-Watt’s campus in Putrajaya Malaysia requires a quality online solution for its Foundation Studies, which may not be able to run on-campus in early May due to the COVID-19 movement control order in the country. Approximately 200 to 250 students enrol to take Foundation Studies each semester at the Putrajaya campus, which has a total of approximately two thousand students.

OpenLearning’s Learning Services division in Australia will work remotely with Heriot-Watt’s lecturers and academics in Malaysia to redesign the 10 courses that make up the first semester of the Foundation Studies program, which is due to commence in May 2020.

Learning services agreement

Under the agreement, Heriot-Watt will pay OpenLearning a once-off services fee of A$289k (ex GST) for providing learning design services on the OpenLearning platform, which will be carried out from April to September 2020 in tandem with students undertaking the courses starting in May 2020. The services fee would be paid to OpenLearning in line with the delivery of the project in 4 equal instalments and subject to standard termination provisions including insolvency, and fundamental breach of agreement clauses.

The agreement includes a 1-year license of the OpenLearning platform, which would enable HeriotWatt to deliver the Foundation Studies program as well as create additional courses to explore the functionality of the platform. If Heriot-Watt continues with the program in the 2021 academic year then they would be required to subscribe to OpenLearning under its usage-based SaaS model.

OpenLearning Limited (ASX: OLL) ACN 635 890 390 • Phone: +61 2 8294 9686 • Web: www.openlearning.com Address: Level 2, 235 Commonwealth Street, Surry Hills NSW 2010, Australia

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Potential expansion opportunities

Heriot-Watt is one of the UK's leading universities for business and industry, having campuses in Edinburgh, Dubai, Malaysia, Orkney and the Scottish Borders, as well as 53 Approved Learning Partners and over 29,000 students studying both online and offline.

The redesign of the Foundation Studies program is considered to be high profile within Heriot-Watt and will provide a showcase of OpenLearning’s platform and learning design capability across HeriotWatt’s campuses.

OpenLearning Group CEO & Managing Director Adam Brimo said: “We are very excited to partner with Heriot-Watt University to design a truly world-class online Foundation Studies program. HeriotWatt is a prestigious university with a long history of delivering top-notch education and graduate outcomes for their students. Our team is committed to ensuring that the project is successful and that it effectively showcases the quality and capability of OpenLearning’s solution for universities as they transition online amidst these challenging times. We look forward to further developing this relationship and supporting Heriot-Watt in the years to come.”

Heriot-Watt University Malaysia Provost and CEO Professor Mushtak Al-Atabi said: “Heriot-Watt is a global university with a strong reputation and it is critically important to us that we offer our students a world-class learning experience, whether that is on-campus or online. We have been very impressed with OpenLearning’s platform, educational philosophy and learning design team, who have been able to mobilise for this project at relatively short notice and are working collaboratively with our academics and staff. The aim of this project is to design a Foundation Studies program that inspires, engages and motivates students, setting a new benchmark for online learning and transforming the way we teach – both online and face-to-face. We look forward to working with the OpenLearning team to make that vision a reality.”

Authorised by:

Adam Brimo Group CEO & Managing Director

Ends.

OpenLearning Limited (ASX: OLL) ACN 635 890 390 • Phone: +61 2 8294 9686 • Web: www.openlearning.com Address: Level 2, 235 Commonwealth Street, Surry Hills NSW 2010, Australia

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For further information, please contact:

Company

Media & Investor Enquiries

Justyn Stedwell Julia Maguire Company Secretary The Capital Network P: +61 3 9191 0135 M: +61 419 815 386 E: investors@openlearning.com E: julia@thecapitalnetwork.com.au

About OpenLearning

OpenLearning Limited is a software as a service company that provides a scalable online learning platform to education providers and a global marketplace of world-class courses for learners of all levels.

OpenLearning’s platform enables the delivery of project-based, social learning to encourage interaction among users and foster a community of collaborative learners. The company’s unique service provides a complete learning environment for all types of online education - from short courses through to microcredentials and online degrees.

With more than 1.74 million learners worldwide across over 7,900 courses provided by 62 education providers, OpenLearning is at the forefront of a new wave of online education delivery.

To learn more, please visit: https://solutions.openlearning.com/

About Heriot-Watt University

With a history that stretches back to 1821, today Heriot-Watt is one of the UK's leading universities for business and industry. Respected and established around the world, we are renowned for producing highly employable graduates and leading-edge research.

To learn more, please visit: https://www.hw.ac.uk/

OpenLearning Limited (ASX: OLL) ACN 635 890 390 • Phone: +61 2 8294 9686 • Web: www.openlearning.com Address: Level 2, 235 Commonwealth Street, Surry Hills NSW 2010, Australia

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