READCLOUD LIMITED — Regulatory Filings 2019

Apr 7, 2019

ACN 136 815 891 ABN 44 136 815 891

Level 1, 426 Glen Huntly Road, Elsternwick, Victoria, 3185

Contact:

Phone: +61 3 9692 7222 Email: contact@readcloud.com

Board of Directors:

Paul Collins, Non-Exec Chairman Lars Lindstrom, Managing Director Darren Hunter, Executive Director Guy Mendelson, Non-Exec Director

Company Secretary:

Melanie Leydin

Securities on Issue:

RCL: 87,750,000 ordinary shares RCLO: 16,666,663 options

Website:

https://www.readcloud.com/

ASX Announcement 8 April 2019

ReadCloud Partners with ATP

The Directors of ReadCloud Limited ("ReadCloud" or "the Company"; ASX: RCL, RCLO) are pleased to announce that ReadCloud has entered into a 3-year Strategic Distribution Agreement with Australian Training Products ("ATP").

ATP was formed in 2017 when leading workplace learning and resource providers Innovation & Business Skills Australia ("IBSA") and Futura Group merged. Since IBSA's inception in 2004, it has been the market leader in developing high-quality Vocational Education and Training (VET) learning and assessment resources that enable training providers to deliver excellent outcomes.

By entering into the Strategic Distribution Agreement with ReadCloud, ATP has committed to using ReadCloud exclusively for 3 years as their digital content encryption and eReading delivery platform to its customer base, which includes over 1,000 Registered Training Organisations ("RTO") in Australia and overseas.

ATP provides a range of bespoke learner resources for both Australian and international customers across the VET (including TAFE), university and commercial sectors. Key industries supported include Aged Care, Defence (the Australian Navy), Government, Commercial Cookery, Hospitality, Business and Management. ATP's customer base is largely complimentary to ReadCloud's growing base of secondary school customers.

Garry Gow, Executive Director, ATP said: "We are excited to partner with ReadCloud as their technology can protect our digital content to reduce piracy and deliver a seamless integration with our customers' Learning Management Systems. ATP provides a wide range of training resources to over 1,000 RTOs in Australia and internationally. We look forward to offering our customers the ReadCloud platform to enable secure delivery of our content."

Lars Lindstrom, CEO, ReadCloud said: "We are delighted to have partnered with ATP as it provides a significant opportunity to leverage the ReadCloud digital education platform across a new and much broader customer base in the VET sector.

The ReadCloud platform offers ATP the ability to reduce piracy by offering protected digital content, and to achieve significant savings in printing and mailing costs. It also demonstrates that the ReadCloud software suite has applications to add value in education outside of the secondary school business that we currently operate in."

Prior to signing the Strategic Distribution Agreement, ReadCloud has already been deployed to a small number of users for some of ATP's customers including a university, a TAFE and four other RTOs.

The partnership with ATP provides ReadCloud with a significant growth opportunity over the medium term. Management estimates that the roll-out of ReadCloud to ATP customers will occur gradually as ATP transition their RTO customers to digital content. Therefore, management is not in a position to estimate the potential increase in user numbers at this point.

-Ends-

About ReadCloud Limited ("ReadCloud")

ReadCloud is a leading provider of software solutions, including eBooks, to schools within Australia. ReadCloud's proprietary eBook reader delivers digital content to students and teachers with extensive functionality, including the ability to make commentary in, and import third party content into eBooks.

Students and teachers can share notes, questions, videos and weblinks directly inside the eBooks turning the eBook into a place for discussion, collaboration and social learning, substantially improving learning outcomes. ReadCloud sources content for its solutions from multiple publishers so that together with its reseller Channel Partners, ReadCloud is able to deliver the Australian school curriculum in digital form in all States, on one platform.

ReadCloud also provides digital Vocational Education and Training (VET) course materials and services to Schools through its subsidiary Australian Institute of Education and Training (AIET) who offers 37 VET courses and Auspicing services to schools across Australia.

CONTACTS:

Investors & Media:

Luke Murphy, Chief Financial Officer +61 409 933 924