SPACETALK LTD — Capital/Financing Update 2019

Jul 24, 2019

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ASX Announcement

MGM Wireless Limited (ASX:MWR)

25 July 2019

SIGNIFICANT EXPANSION OF SPACETALK SALES IN NEW ZEALAND NOEL LEEMING, HARVEY NORMAN AND JB HI-FI

Highlights:

• Noel Leeming, Harvey Norman and JB Hi-Fi to sell SPACETALK nationwide through 118 retail stores and online in New Zealand

• Currently, Spark New Zealand Limited (“Spark”) sell SPACETALK in 71 company stores and online.

• Global growth expected to continue in FY20, bolstered by increasing product and brand awareness

– 25 July 2019 Technology company MGM Wireless Limited (ASX:MWR) (‘MGM’ or ‘the Company’) today announced a significant expansion of its New Zealand retail distribution with Noel Leeming (77 stores), Harvey Norman (35 stores) and JB Hi-Fi (6 stores) joining SPARK to sell the SPACETALK Children’s Smartwatch Phone in a combined 189 store network.

The agreements provide further validation of the emergence of a new wearable mobile phone product category specially designed for children aged 5-12 years old – of which SPACETALK is the market leader.

This development also advances the Company’s international growth strategy.

MGM Wireless CEO Mark Fortunatow said: “We are thrilled that SPACETALK will now be sold across all the major mobile and electronic retailers in New Zealand. This development will provide a large number of retail point of sales presence to support the mass market adoption of SPACETALK across New Zealand.

“This development supports the emergence of a new wearable mobile phone product category. Specially designed Children’s Smartwatch Phone devices are a safe and responsible way for families to stay connected without the dangers of open internet, social media, bullying and the many other distractions associated with Smartphones.

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“Leading retailers are seeing the opportunity and SPACETALK is providing the perfect, high quality wearable device to enable them to build a business and gain new customers in this fast-growing new product category.

“According to Gartner, the world’s leading research and advisory company for the technology sector, global spending on wearable devices is forecast to reach USD$42 billion in 2019.[1] This supports MGM Wireless’ view that children’s wearable mobile phone devices promises to be a high growth sector during the next decade.”

ABOUT MGM Wireless

MGM Wireless Limited is a technology company designing, developing and commercialising a smartphone + watch wearables device for children, and software for school communication and student absence management. The Company’s AllMyTribe division has developed a children’s all-in-one smartphone, watch and GPS device called SPACETALK, which allows two-way 3G phone calls and SMS messaging to a parent-controlled list of contacts. Other features include GPS tracking to alert parents whenever children leave designated safe spaces, such as school or the home.

Importantly – a key safety feature of SPACETALK is that it doesn’t give children access to social media, apps, open internet, YouTube or other such services dangerous to young children. In addition, during school hours, the device can operate in ‘School Mode’ whereby all communication features are disabled to ensure children won’t be distracted.

MGM Wireless built its track record with school communication solutions after discovering in 2002 the application of SMS communication in schools. The Company went on to create the world’s first SMS based Automated Student Absence Notification Solution and many other innovations since then. It is recognised as a global leader and pioneer in socially responsible and technology-enabled school communication.

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 1400 schools and 1.7 million parents, the Company’s school communication solutions empower schools to effectively communicate and engage parents and caregivers through SMS, mobile in-app and other

1 Gartner.com, Gartner Says Worldwide Wearable Device Sales to Grow 26 Percent in 2019 , November 2018.

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means to improve student attendance and safety, help schools reduce operating costs and increase parent engagement. To learn more please visit: www.mgmwireless.com

www.mgmwireless.com

-Ends-

Investor Enquiries:

Ashley Rambukwella, FCR a.rambukwella@fcr.com.au M: +61 407 231 282

MGM Wireless Limited:

Megan Coleman – Marketing and E-Commerce Sales Manager mcoleman@mgmwireless.com M: +61 407 215 292

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