SPACETALK LTD — AGM Information 2011

Oct 31, 2011

MGM WIRELESS LTD ABN 93 091 351 530 Chairman's Address to Shareholders November 1, 2011

Good morning Ladies, Gentlemen and fellow shareholders,

Introduction

I am pleased to stand here before you to report on the progress of the company over the past year and the very exciting future ahead.

Company goals, targets and performance

A year ago our goals and targets moving forward were to:

• Accelerate revenue growth, while maintaining positive cash flow;
• Leading to improved profits; as a result of
• Continuing to innovate and invest in the development of new products; including
• Capitalising on new products already announced such as School News Channel and other products and developments in the pipeline; thereby
• Differentiating MGM Wireless in the marketplace and positioning its product suite as the pre-eminent school safety, attendance, messaging and social networking solutions.

In the financial year ended 30 June 2011, revenue increased by 5% to \$2.4-million and net profit by 27% to \$257-thousand. This is now our second year of profitable operations. A record \$ 635-thousand in cash generated from operations was also reinvested in innovation. The number of operational customers also grew over this period by 123 customers to 698 schools. The large growth in numbers of schools is not fully reflected in top-line revenue growth, because the company's has effectively developed and deployed a range of internet strategies that take costs out of its business model. These costs saving in part are passed to the customer by way of lower sales prices which whilst initially not intuitively being considered a good strategy – is in fact the way successful internet strategies and on-line business operate. This demonstrates that the goals for last year were largely met.

In the past week, the company released a research report by Gordon Capital, which articulates the company's strategy moving forward in some detail. I encourage all shareholders to read this report, which is available as a download from the company's website. Today I will review discuss key points in this strategy and our goals moving forward, which is indeed very exciting.

Strategies and Goals for 2011

Over the past 2 years the company has developed a significant number of new products and innovations, which provide a dual strategy to both grow the business with a high level of certainty and a second strategy that will potential deliver very rapid growth with significant margins.

Let me explain.

MGM has finalised or is nearing completing a number of new products that will add value and be attractive to both our existing significant customer base of over 700 schools as upgrades as well as to new customers. These include a range of products for attendance management, social messaging and now cloud roll marking. Products which are already released – such as Smartsync are being well received in the marketplace and already delivering revenue growth and high levels of customer retention.

Two weeks ago we announced the company's entry into the childcare market. This followed test campaigns in South Australia whereby the company in one sweep approached 300 centres and signed 20. Since then we have been studying this markets needs, behaviours and have developed a national roll-out strategy which is now underway to almost 10,000 childcare centres. I'm pleased to today announce that we are working with well over 100 centres and interest is high. I look forward to updating shareholders with numbers of contracted centres later this year.

Our other strategy is to deploy an entirely new business model where parents and others will pay to receive messages from the schools. This model has the potential to markedly accelerate medium to long term growth and deliver revenues considerably higher than from our current model. We are calling this model School News Channel, and it is in final stages of development and testing. The company in also in advanced stages of refining its marketing strategies and will be carrying out further testing on these marketing strategies in the coming months. School News Channel's model is purpose built for the internet – in marketing, service delivery and economics, and is as innovate and ambitious as can be found in the highest quality tech start-ups worldwide. Test campaigns conducted so far show a high level of interest in the service, and the company is currently refining business process that can withstand rapid growth levels in viral uptake that are likely to occur.

As you can see from the above, the company is in a good position. We have a established, solid, robust, profitable and cash generating business that we will grow further using a mix of proven strategies and at the same time deploy a very promising, high quality innovation – School News Channel that has the potential will grow the company's revenues very significantly over the next five years.

US Market

Funding in the US school system remains challenging. However, our new School News Channel platform is expected to fit well into this environment, and we will be pursuing our US opportunity with School News Channel once we achieve a clearer understanding of this business in Australia with the assistance of our US domiciled director, Shaun Collopy.

Share Consolidation

As you are all no doubt aware, today MGM Wireless shareholders approved a 30:1 share capital consolidation. Whilst the consolidation won't of itself change the underlying valuation, it will change the perception of the company and reinforce that it is sustainably profitable and established company rather than just another junior hopeful.

2012 promises to be a very exciting year for MGM Wireless. I thank all shareholders and investors for your ongoing support, attention and hope that you share the excitement with us.

I now invite questions on the Company's affairs.