SPACETALK LTD — Capital/Financing Update 2016

Apr 18, 2016

ASX Market Announcements ASX Limited 20 Bridge Street Sydney NSW 2000

ASX Release MGM Wireless Ltd

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19 April 2016

MGM Wireless achieves world first in school communication with breakthrough app SchoolStar

Key Points:

• First mobile app for school news and attendance messaging that protects school data

• Free, 2-way, personalised in-app messaging with automatic failover to SMS

• Secure, closed communication app can only be accessed by parents and students registered with the school

• Engaging Facebook-style School News Feed with analytics regarding news consumption patterns

School communication and software specialist MGM Wireless (ASX: MWR) has launched SchoolStar, a major breakthrough in school messaging, communication and attendance management that opens the door to new opportunities in the global school apps market.

SchoolStar is the world’s first communication platform to offer schools the cost savings of free secure, personalised, 2-way in-app messaging with the assurance of automatic switchover to 2-way SMS where app communication is unavailable.

This unique capability eliminates additional costs for cash-strapped schools that have to implement separate mobile app and SMS communications to enable them to reach all parents, which has become a prerequisite following the terror hoaxes that led to multiple school lockdowns earlier this year.

MGM Executive Director Mark Fortunatow said that MGM’s existing school customers in the government and non-government sectors had responded enthusiastically to the new app, both for its visual appeal and functions that no other app delivers.

“Public and private schools now have a secure, school-branded app with free, 2-way in-app messaging and the ability to send SMS automatically when the app is unavailable for any reason,” Mr Fortunatow said.

“Parent engagement can now be measured using analytics that privately show which newsfeed stories are being read and which are being ignored.”

SchoolStar offers a closed system for each school in a popular app format that’s easy for schools to integrate with their existing databases.

“We are very proud to be delivering a ‘world-first’ product that meets the requirements of privacy, security and communications expected by schools and parents,” Mr Fortunatow said.

SchoolStar schools now have the ability to contact anyone, from individual parents, to family groups, alumni, students and sports teams, right through to the entire school community, at reduced overall communication costs and with absolute confidence that their messages will be delivered regardless of mobile data reception and uncertainty about app-download status.

“Schools are legally prohibited from giving access to student details, including images and locations, and of course they don’t want to publicise school news and events to just anyone who downloads the app,” Mr Fortunatow said. “Only with SchoolStar, parents must be registered with their school and then complete a 2-factor authentication process to access all this sensitive information – such as school camps and sports days.”

Mr Fortunatow said that interest in the new product had been exceptional.

“It’s clear from the advance demand that SchoolStar is meeting a keenly felt need by schools. We firmly expect that SchoolStar will change our business, and school communications more generally.

“We will be offering SchoolStar free of charge with all MGM School Communication and Management Systems. This will remove the need for schools to pay a subscription for school apps and a separate SMS service.”

Mr Fortunatow said that the introduction of SchoolStar was expected to reduce revenue from attendance SMS but increase SMS revenues overall due to the increased adoption of SchoolStar as the primary platform for all types of school communication, such as School News, Newsletters, Events, Calendars, Student Timetables, Sick Note forms and much more.

Revenue is also expected to increase from the expansion in contracted schools due to increased attractiveness and greater use of MGM Wireless’s other products.

“So-called cannibalisation of SMS revenue by in-app messaging is inevitable, that is the nature of technological advances,” said Mr Fortunatow. “What is important is being able to anticipate the market with innovative products that bring convenience and savings to our users and financial growth to our company.”

SchoolStar is understood to be the first system in the world to provide seamless automatic switchover between in-app 2-way messaging and SMS.

“School administration doesn’t need to worry about the method used to deliver the message – MGM systems just take care of it all automatically in the background,” Mr Fortunatow said.

The company will be exploring opportunities for international sale of the product.

Background

MGM Wireless invented SMS based attendance management systems for schools in 2002 and has since developed a suite of products that exploit developments such as cloud computing and the evolution and adoption of smartphones.

“Having been the world-wide pioneers of SMS communication for schools, we are proud to be delivering the technological advance which maintains the standards of security, personalised communication and management we set originally, with the utility and cost savings available through in-app messaging and communication,” Mr Fortunatow said.

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 to 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: 0421 328 984 Phone: 08 8104 9508 Email: mfortunatow@mgmwireless.com Web: www.mgmwireless.com