SPACETALK LTD — Capital/Financing Update 2023

May 9, 2023

ASX Announcement Spacetalk Ltd. (ASX:SPA) 10th May 2023

Stabilisation and Growth Strategy Update

Spacetalk Limited (ASX:SPA) ("Spacetalk" or the "Company"), the developer of technology providing tools to support family safety and security at every stage of life, is pleased to provide details on its newly announced stabilisation and growth strategy.

Highlights:

• New strategy to bring clarity to Spacetalk's future, underpinning purpose, direction & focus
• Emphasis on lifetime family security – safety at every stage of life
• Centered around new product and segment initiatives to anchor future updates
• Creates cohesive narrative, aligning Spacetalk under central brand
• Opportunity to leverage existing products and services to engage new customer segments
• Strategy implementation phased across three horizons; significant progress well-underway
• Investor webinar to be held 10.30 AEST today, Wednesday 10 May (register here)

Commenting on the strategy update, Chief Executive Officer and Managing Director Simon Crowther, said:

"Spacetalk's strategy provides a clear statement of intent for the direction and focus of the business. Our goal is to be the most trusted provider of family safety and security at every stage of life in Australia & New Zealand. To achieve this, we will activate all areas of identified opportunity, continue our evolution to be more software centric and build our subscription base. Future progress updates will be centered around disciplined delivery against our objective to achieve profitability in Australia & New Zealand. This in turn will set us up for controlled overseas expansion in due course. I am excited about the growth potential of the business and our ability to provide enhanced peace of mind to families."

Strategy to create a sustainable future for Spacetalk

With a vision for safety at every stage of life, Spacetalk's go-forward mission is to ensure family security by providing an ecosystem of products that enable freedom and create peace of mind. In light of this, Spacetalk's new stabilisation and growth strategy has been developed around six key principles that will guide Company focus and execution moving forward: (1) Australia and New Zealand first; (2) whole of Spacetalk; (3) whole of life; (4) customer centric; (5) software focused, enabled by core hardware; and (6) sustainable recurring revenue and increasing customer lifetime value.

Customer centric organization, aligning under one central brand

To deliver the Company's growth goals and build brand and customer alignment, Spacetalk will become a customer centric organization, underpinning how the Company is organized, goes to market, understands customers and places products and services at the centre of family life. The result of this will see Spacetalk shift from historically been more product centric across multiple brands (eg. Spacetalk, JumpySIM, MGM) towards a customer centric organization under a single brand. Under this new approach, Spacetalk will continue to focus on its existing customer base, while also expanding into

new segments.

Opportunity to leverage existing products and services to engage new segments

Moving forward, Spacetalk will focus on four target customer segments: Young Families, Schools & Educators, Seniors & Vulnerable Families as well as Employers & Workers.

While Young Families has the largest market potential, underpinned by Spacetalk's existing market penetration, both Seniors & Vulnerable Families as well as Employers & Workers represent significant potential for Spacetalk. Aligning under one central brand will allow Spacetalk to effectively utilise its ecosystem of products and services as well as proprietary customer database to better serve the needs of an expanded customer base.

Significant progress well-underway across multi-phased strategy

Since February, Spacetalk's newly appointed leadership team have already made significant progress identifying and commencing implementation of this new Company-wide strategy. With an initial objective of Company stabilisation, the leadership team continues to focus on building a platform capable of achieving sustainable future growth.

Strategy implementation will be phased across three horizons and will require disciplined capital management. Pleasingly, management is well-underway with respect to Spacetalk's strategic priorities under Horizon 1 to stabilise the business overall, build product development capability and align under the Spacetalk brand.

Moving forward, Spacetalk will continue to update the market in relation to progress across each horizon.

Investor webinar

The Company will host an investor webinar to present this strategy update today – 10.30am AEST Wednesday, 10 May 2023. Register for the investor webinar via the link below:

https://us02web.zoom.us/webinar/register/WN\_Ut7nfkR3SZ2sZ4CchFgrnw

Questions can be pre-submitted to sam@nwrcommunications.com.au or asked via the Q&A function during the webinar.

This announcement was authorised by the Board of Spacetalk Limited.

For more information, please contact:

Simon Crowther Sam Wells Tel: 1300 087 423 Tel: 0427 630 152

CEO and Managing Director Investor Relations (NWR Communications) Email: sam@nwrcommunications.com.au

About Spacetalk Ltd.

Spacetalk Ltd. (ASX:SPA) is the developer of technology providing tools to support family safety and security at every stage of life.

The ASX-listed company is recognised globally as a leader in the connected wearablesindustry thanks to its unique proprietary ecosystem that keeps families safe. This market-leading hardware and trusted, parent-controlled software platform enable children and families to experience the benefits of mobile technology securely and with confidence.

With the Spacetalk App, parents can prevent their children's' access to the open internet, social media and inappropriate adult content while blocking calls and messages from unknown senders. The app also keeps track of a child's location and is customisable so every feature can be enabled and disabled as needed.

Spacetalk's best-in-class software platform supports children's development by facilitating engaging, confidence-building experiences that the whole family can participate in and enjoy.

The Spacetalk smartphone-watch is a child's first mobile phone, offering all the benefits of a smartphone and operating on a secure, private and parent-controlled ecosystem that can be customised to reflect each family's needs and values. Together, the watches and software platform provide a complete digital communication solution that families can always rely on.

Spacetalk was founded in 2001 and listed on the ASX in 2003 as MGM Wireless Limited, which developed the world's first SMS student absence notification platform for schools and went on to become Australia's most successful school messaging company. On 12 November 2020 the Company changed its name to Spacetalk Ltd.

To learn more about how Spacetalk devices and app platform keep families safe at every stage of life, and the Company, please visit: www.spacetalk.co/. Investor Centre: www.investors.spacetalk.co.