SPACETALK LTD — Capital/Financing Update 2018

Jun 13, 2018

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ASX Announcement

MGM Wireless Limited (ASX:MWR)

14 June 2018

SPACETALK BRICKS AND MORTAR ROLLOUT COMMENCED FIRST STORES STOCKED AND SALES ALREADY MADE

Highlights:

• 12 new bricks and mortar shops signed

• 10 are part of the Leading Edge Group (an association of 950+ independent retailers)

• 9 shops are stocked with SPACETALK and are reporting sales

• Announcements of more bricks and mortar retailers anticipated in coming weeks

14 June 2018 – Technology company MGM Wireless Limited (ASX:MWR) (‘MGM’ or ‘the Company’) today announced that 12 new bricks and mortar retailers are contracted to sell the Company’s SPACETALK Children’s revolutionary all-in-one smartphone, watch and GPS wearable device.

The new stockists are primarily in the country areas of NSW, Victoria, Queensland, Western Australia and South Australia. All are specialist consumer electronics or computer retailers.

Ten of the shops are part of the Leading Edge Group – an association of over 950 independent business and retailers across Australia. Rollout to additional members of the Leading Edge Group continues.

Nine stores received their SPACETALK stock in the past week, and some shops have already reported first sales.

The Company has designed and developed very attractive in-store counter display stands and promotional materials to showcase and explain the benefits of SPACETALK in-store (prototype shown below). The display stands are being manufactured and are expected to be on display instore in approximately 2 weeks. Retailers expect sales to accelerate once the display stands and promotional material are in-store.

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The Company continues to receive strong interest in its product and is in discussions with many more bricks and mortar retailers, distributors and mobile network operators in Australia and internationally.

The Company expects further announcements of significant bricks and mortar rollouts in the coming weeks.

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Prototypes of in-store counter stand promotional material

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About SPACETALK

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SPACETALK is an all-in-one children’s smartphone, watch and GPS tracker that allows parents and children to be in constant contact without exposing their kids to the dangers of social media apps, such as Facebook, Instagram, YouTube, Google and unrestricted access to the Internet.

It is the first of its kind to be wholly developed in Australia and one of the first worldwide. The child can make or receive calls from a list of contacts parents choose in the AllMyTribe® smartphone app. If the child needs help, a special SOS alert function can be customised to call parents and other guardians. Parents can see their child's location on their smartphone and the AllMyTribe App features alerts so whenever children leave designated safe spaces such as school or home, parents are notified. A step counter tracks the wearer’s physical activity.

SPACETALK has been independently verified by leading international cyber security experts as “unhackable”, and has world’s best practice security and privacy features built in. It will also meet the upcoming European GDPR regulations. All data is hosted in Australia in highly secure data centres and protected by Australian Privacy and Data Security legislation, so security is assured.

ABOUT MGM

MGM Wireless Limited is a technology company designing, developing and commercialising Internet of Things (IoT) devices for children, and software for school communication and student absence management. The Company’s AllMyTribe division has developed a wearable device called SPACETALK, which allows two-way 3G communication, GPS tracking and alerts parents whenever children leave designated safe spaces, such as school or the home.

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MGM Wireless built its track record with school communication solutions after creating the world’s first SMS based Automated Student Absence Notification Solution. It is recognised as a global leader and pioneer in socially responsible and technology-enabled school communications.

MGM Wireless products include student absence notifications ‘messageyou’, absence analytics software ‘Watchlists’, school news and messaging app ‘School Star’, a content management and messaging platform for mobile school communication called Outreach+, and student attendance management solution ‘RollMarker’.

Used by over 1,100 schools and 1.6 million parents, the Company’s multichannel school communication solutions empower schools to effectively communicate to parents and caregivers through SMS, mobile in-app and other means to improve student attendance and safety, help schools reduce operating costs and increase parent engagement. To learn more please visit: www.mgmwireless.com

For more information please contact:

MGM Wireless Limited

Mark Fortunatow, CEO

mfortunatow@mgmwireless.com

M: +61 421 328 984

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