SPACETALK LTD — Capital/Financing Update 2006

Jun 22, 2006

The Parks, Suite 13 154 Fullarton Road Rose Park SA 5067 P: 08 8431 2300 F: 08 8431 2400 W: www.mgmwireless.com

June 23rd, 2006

Companies Announcement Office Australian Stock Exchange Limited 20 Bridge Street Sydney NSW 2000

MGM Wireless deploys messageyou™ in the US

Adelaide-based MGM Wireless Ltd (ASX Code: MWR) today announces that it has reached agreement to place A$372,000 in fresh capital in order to fast track the deployment of its market leading messageyou school attendance text messaging service in the US.

MGM Wireless reached agreement earlier this year to trial messageyou in three schools in a midwest American town about the same size as Adelaide. "The schools were implemented in the last weeks of the US school year, the school communities were alerted to the new service and text message trialling took place." said MGM Wireless executive chairman. Mr Mark Fortunatow.

"The groundwork is now in place for these schools to be up and running for the start of the new school year, which begins on July 24th, 2006," Mr Fortunatow said. "However, school enrolments start in the next fortnight and we want to be as ready as we can be for these important first few months."

"In three vears, we have captured just under 10% of the Australian secondary school market and have more than 90% penetration of messageyou in two entire regions of Australia. Obviously, the US is an enormous market, but if we can have even half that rate of success among the 55,000 or so US secondary school and colleges, we will be more than delighted."

More than 200 Australian secondary schools now use messageyou. Australian schools are also starting to implement MGM's other attendance monitoring system, messagevouWatchlists™.

"The MGM Wireless text messaging and attendance monitoring systems are finding an eager market in Australia, driven by the effectiveness of communicating with parents and guardians via mobile phone texts. The number of text messages that schools are sending has been growing at around 30% a month this year as school communities discover the effectiveness of getting vital attendance and other school information across to parents via unobtrusive messages on their mobile phones."

"Mobile phone penetration into the Australian population is now more than 90%. You are seven times more likely to be able to contact someone on their mobile than using a traditional land line.

"The situation is not all that different in the US where more than 9.8 billion messages were sent in December 2005, up from 2.1 billion in the same month in 2003. And we intend over the first half of the coming US school year, to demonstrate that messageyou can have the same impact on cutting truancy levels in American schools, as it has done so effectively in Australian schools which deploy our system. The MGM Wireless track record speaks for itself."

In accordance with Australian Stock Exchange Listing Rule 3.10.3, the Company provides the following details of the placement shares:-

Class of SecuritiesNumber to be Issued	Fully paid ordinary shares.9,300,000
Principal Terms of Securities	The shares will carry standard rights applicable to quotedordinary shares in the Company and will, from the date ofissue, rank equally with fully paid quoted ordinary sharescurrently on issue.
Issue Price	$0.04 per share.
Purpose of IssueShareholder Approval	To raise working capital for trials and expansion in the USA.The Company will not seek shareholder approval prior to theissue of the 9,300,000 placement shares, as approval for thisissue is not required by the Listing Rules. The Companyintends to subsequently seek approval of this issue at a generalmeeting pursuant to Listing Rule 7.4 (subsequent approval ofissue of securities).
Issue to Class	The issue is not being made to a class of security holders.

As the issue will be to sophisticated or professional investors, it will not require disclosure under the Corporations Act.

For additional information, please contact Mark Fortunatow on (08) 8431 2300