SPACETALK LTD — Earnings Release 2013

Jan 28, 2013

ASX Market Announcements ASX Limited 20 Bridge Street Sydney NSW 2000

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ASX Release MGM Wireless Ltd

MGM BUSINESS UPDATE & HALF YEAR EARNINGS GUIDANCE

MGM Wireless finished the 2012 calendar year strongly with a high level of new school signings and keen interest in School News Channel, which was launched earlier in the year. As at the end of December 2012, 963 schools were contracted and operational compared with 753 a year earlier, an increase of 28%. The retention rate continues at a very high level which is a clear endorsement of the value of the service to schools and parent communities. We expect the number of schools subscribing to the company’s market leading SMS text messaging service to pass the 1,000 threshold during the 2013 financial year.

Reflecting the strong growth in subscribing schools, operating margins are expanding and underlying profit growth is strong. Subject to final completion of the financial audit, which potentially may lead to some adjustments, the company expects to report revenue growth of about 15% for the six months ended 31 December 2012 compared with the same period in 2011 with headline net profit growth of about 5%.

As at 31 December 2012, cash balances amounted to $444K, up from $169K as at 30 June 2012. Apart from Directors loans of $300K, the company remains debt free.

There are two issues that will dampen reported profit and mask the underlying strength of the company’s financial performance in the December 2012 half year. Firstly, the company will take a non-cash charge against profit for the options that were issued to Directors following the 2012 AGM. Secondly, a change in timing in invoicing the New Zealand government for the 30 schools in that jurisdiction that subscribe to the company’s service has meant that revenue and profit from that service agreement will entirely flow in the June half year. In the 2012 fiscal year, revenue and profit from New Zealand was heavily weighted to the December half year.

The underlying strength exhibited over the past six months is expected to be sustained through the 2013 school year. In addition to passing the 1,000 school threshold, the company’s position as Australia’s leading provider of school to parent communications services will be cemented during the year with the release of a solid range of new products and enhancements to existing products. School News Channel is expected to gain traction with schools and further sales of the premium, market leading Rollmarker product will enhance margins.

Mark Fortunatow, MGM Wireless CEO said

“MGM Wireless is committed to ongoing development, innovation and enhancement in the way that schools engage with parents and other key stakeholders. New products and enhancements to existing products are keys to this commitment and will continue to drive the company’s growth. In 2012 important foundations to the company’s future were put in place which we are confident will lead to accelerated growth over the next two years.”

About MGM Wireless Ltd and Messageyou, LLC

MGM Wireless is recognized in Australia and internationally as a pioneer of socially responsible technology-enabled school communications with a proven track record to design, develop and successfully commercialise 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, New Zealand and the United States 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 8104 9508 Email: mfortunatow@mgmwireless.com Web: www.mgmwireless.com