SPACETALK LTD — Capital/Financing Update 2014

Oct 22, 2014

ASX Market Announcements Australian Securities Exchange 20 Bridge Street Sydney NSW 2000

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ASX Release MGM Wireless Ltd

October 23, 2014

MGM BUSINESS UPDATE

MGM Wireless (ASX:MWR) completed the September 2014 quarter with accelerating revenues and several key developments as a result of investment in product innovation and building relationships with key stakeholders.

Your company’s products are helping the focus on education opportunities among indigenous and non-indigenous young people in the Northern Territory. As a direct result of the new policies from Prime Minister Tony Abbott to bridge the gap in school attendance between indigenous and nonindigenous pupils, seven schools received Federal Government funding to purchase MGM’s flagship student attendance improvement solutions RollMarker, messageyou and Watchlists. This decision was based on the demonstrable success achieved by other MGM school users in the Northern Territory and elsewhere. The company expects more schools to be funded and implemented in the future.

“MGM Wireless is helping Northern Territory educators tackle one of the great problems among young people,” said MGM Wireless executive chairman, Mr Mark Fortunatow. “We are proud to help tackle this important issue and look forward to working with the Federal and Northern Territory Governments to drive these initiatives over the course of the next few years.”

MGM Wireless also signed a key agreement in Western Australia. The WA Education Department, after a comprehensive tender process, once again chose MGM Wireless to supply its messageyou SMS student attendance notification systems and Watchlists analytics software to all State government schools. The contract currently covers 327 schools and under the new terms of the contract, schools and now childcare centres will have access to a much broader range and the latest releases of MGM products not just for attendance management, but also for social and community messaging, event reminders, late breaking news and emergencies. For 2015, all WA schools have been given a 95% attendance target, and MGM’s solutions are seen as key tools to assist schools in achieving these results.

The company completed and released the next generation of our flagship product Outreach – MGM’s social and community messaging platform. Just last week, MGM Wireless deployed Outreach Plus in over 563 schools across Australia and New Zealand. MGM Outreach Plus has breakthrough new features including the ability to insert file attachments such as Newsletters, Form and Voice Clips into SMS messages; brand messages with the school logo; distribute SMS messages directly onto Facebook, Twitter and LinkedIn; and over 30 other new features.

“Feedback from users is enthusiastic, with several schools already having sent their Newsletters by SMS to parents,” Mr Fortunatow said. “The response from parents was very positive. Outreach Plus has the capability to revolutionise the way schools communicate with parents direct to their mobile devices and across social media.”

MGM Pinpoint achieved a significant milestone with several high profile independent schools announcing mandating parents to download and use this student safety service, enabling them to locate their child in the event they are missing from school without a reason. MGM Pinpoint was released in February this year, and whilst having been conceptually positively received, feedback from parents showed some additional functionality was desired, including continuous access to their child’s location – rather than the current restriction to school hours. The current number of app installations is 1,940.

“We are continuing to analyse feedback from the rollout of phase one of this revolutionary product and we are aiming to release the next generation of MGM Pinpoint in early 2015,” Mr Fortunatow said.

The company continues to experience growth across all key metrics. As at the end of September 2014, 1,134 schools were contracted compared with 1,021 a year earlier, an increase of 11%. Message volumes are currently tracking 16% up on last year and revenues are expected to be up 8- 14% this year.

“With the recent releases of new products, as user adoption kicks in, MGM is starting to see signs of accelerated growth rates in revenues,” Mr Fortunatow said. “We are pleased to see the results of our efforts in R&D, new product releases and enhancements driving the company’s growth.”

MGM Wireless is holding its Annual General Meeting in Melbourne on November 21, 11:00am (AEDT) at the RACV City Club, 501 Bourke Street, Melbourne, where a further update will be provided to shareholders.

About MGM Wireless Ltd and Messageyou, LLC

MGM Wireless is recognised in Australia and internationally as a pioneer of socially responsible technology-enabled school communications with a proven track record in designing, developing and successfully commercialising innovative world class technology products.

The company’s patented SMS School communication solutions empower schools to effectively communicate with parents and caregivers, using SMS text messaging to improve student attendance, welfare, safety and parent engagement. Measurable benefits for schools include reduced operating costs, increased productivity and improved parent and community engagement which ultimately improve student learning and social outcomes.

Schools in Australia and New Zealand use Messageyou software in their day to day operations.

For further information contact: MGM Wireless Ltd. - (ASX:MWR) Mark Fortunatow, CEO Mobile: +61 421 328 984 Phone: +61 8 8431 2300 Email: mfortunatow@mgmwireless.com Web: www.mgmwireless.com