SPACETALK LTD — Interim / Quarterly Report 2010

Oct 29, 2009

MGM Wireless September 4C quarter results.

October 30 2009

South Australian-based school communications group MGM Wireless Ltd announces a further positive growth quarter to the end of September 2009.

On a like-for-like basis, during the quarter, the company's sales were $ 491,685 compared $ 423,000 to the corresponding period 12 months ago – an improvement of 16%, and an improvement of 3% from the previous June 2009 quarter of $ 475,499.

A net number of 470 schools were contracted as at September 30, 2009, an increase of 100 from the previous quarters number of 370. Of the 470 contracted schools, 408 are fully operational, with the balance of 64 schools in various stages of implementation.

MGM Wireless executive chairman Mr Mark Fortunatow commented: "We are pleased with the ongoing positive progress during the quarter. The quality of our forward revenue stream and contracts continues to improve and strengthen".

"There is a growing focus among Australian schools and school administrators on safety within the school community and the

benefits of effective communications during times of crisis such as bushfires, floods and medical emergencies such as those brought about by concerns over such things as influenza contagion," Mr Fortunatow said.

"The mobile phone is ubiquitous in today's society and text messages are a quick, efficient and unobtrusive way of keeping school communities up to date and aware of what is happening inside the school."

About MGM Wireless Ltd and Messageyou, LLC

MGM Wireless Ltd is a public company with a market capitalisation of A$ 3.7 m listed on the Australian Securities Exchange (ASX code: MWR). The company trades as Messageyou, LLC in the United States, with its head office in Silicon Valley at Sunnyvale, Cal.

The company's patented School Attendance Management solutions empower schools to effectively communicate to parents and caregivers using SMS text messaging in combination with culturally sensitive communication to improve attendance, student welfare and safety. MGM Wireless is recognized in Australia and internationally as pioneers and market leaders. MGM's professional services team delivers an integrated suite of software and communications using its own infrastructure. The solutions enable schools to reduce costs, increase productivity, discharge their duty of care, engage parent involvement, and ultimately improve student learning and social outcomes. Schools in Australia, New Zealand and America use Messageyou software in their day to day operations.

For further information contact:

MGM Wireless Ltd. - (ASX:MWR, MWRO) Mark Fortunatow

CEO Mobile: +61 421 328 984 Phone: +61 8 8431 2300 Email: mfortunatow@mgmwireless.com Web: www.mgmwireless.com

Appendix 4C

Quarterly report for entities admitted on the basis of commitments

Introduced 31/3/2000. Amended 30/9/2001

Name of entity MGM Wireless Ltd ABN Quarter ended ("current quarter")

93 091 351 530 30 September 2009

Consolidated statement of cash flows

		Current quarter	Year to date
Cash flows related to operating activities		$A'000	(.3.months)
			$A'000
1.1	Receipts from customers	415	415
1.2	Payments for(a) staff costs	(311)	(311)
	(b) advertising and marketing	(3)	(3)
	(c) research and development	-	-
	(d) leased assets	-	-
	(e) other working capital	(292)	(292)
1.3	Dividends received	-	-
1.4	Interest and other items of a similar nature
	received	-	-
1.5	Interest and other costs of finance paid	(7)	(7)
1.6	Income taxes paid	-	-
1.7	Other	79	79
	Net operating cash flows	(119)	(119)

		Current quarter	Year to date
		$A'000	(.3.months)
			$A'000
1.8	Net operating cash flows (carried forward)	(119)	(119)
	Cash flows related to investing activities
1.9	Payment for acquisition of:
	(a) businesses (item 5)	-	-
	(b) equity investments(c) intellectual property	--	--
	(d) physical non-current assets	-	-
	(e) other non-current assets	-	-
1.10	Proceeds from disposal of:
	(a) businesses (item 5)	-	-
	(b) equity investments	-	-
	(c) intellectual property	-	-
	(d) physical non-current assets	-	-
	(e) other non-current assets	-	-
1.11	Loans to other entities	-	-
1.12	Loans repaid by other entities	-	-
1.13	Other – Development expenses	-	-
	Net investing cash flows	-	-
1.14	Total operating and investing cash flows	(119)	(119)
	Cash flows related to financing activities
1.15	Proceeds from issues of shares, options, etc.	2	2
1.161.17	Proceeds from sale of forfeited sharesProceeds from borrowings
1.18	Repayment of borrowings
1.19	Dividends paid
1.20	Other (provide details if material)	(7)	(7)
	Net financing cash flows	(5)	(5)
	Net increase (decrease) in cash held	(124)	(124)
1.21	Cash at beginning of quarter/year to date	241	241
1.22	Exchange rate adjustments to item 1.20	7	7
1.23	Cash at end of quarter	124	124

Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities

		Current quarter$A'000
1.24	Aggregate amount of payments to the parties included in item 1.2	89
1.25	Aggregate amount of loans to the parties included in item 1.11	-

1.26 Explanation necessary for an understanding of the transactions Item 1.7 is grant in relation to payment in relation to eligible research & development expenditure.

Non-cash financing and investing activities

2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows

Nil

2.2 Details of outlays made by other entities to establish or increase their share in businesses in which the reporting entity has an interest

Nil

Financing facilities available

Add notes as necessary for an understanding of the position. (See AASB 1026 paragraph 12.2).

		Amount available$A'000	Amount used$A'000
3.1	Loan facilities	-	-
3.2	Credit standby arrangements	-	-

Reconciliation of cash

Reconciliation of cash at the end of the quarter (asshown in the consolidated statement of cash flows) tothe related items in the accounts is as follows.		Current quarter$A'000	Previous quarter$A'000
4.1	Cash on hand and at bank	124	241
4.2	Deposits at call
4.3	Bank overdraft
4.4	Other (provide details)
	Total: cash at end of quarter (item 1.22)	124	241

Acquisitions and disposals of business entities

		Acquisitions(Item 1.9(a))	Disposals(Item 1.10(a))
5.1	Name of entity	N/A
5.2	Place of incorporationor registration	N/A
5.3	Consideration foracquisition or disposal	N/A
5.4	Total net assets	N/A
5.5	Nature of business	N/A

Compliance statement

• 1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act (except to the extent that information is not required because of note 2) or other standards acceptable to ASX.
• 2 This statement does give a true and fair view of the matters disclosed.

Sign here:	M Fortunatow	Date: 30 October 2009
	Director

Print name: Mark Fortunatow

Notes

• 1. The quarterly report provides a basis for informing the market how the entity's activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.
• 1. The definitions in, and provisions of, AASB 1026: Statement of Cash Flows apply to this report except for the paragraphs of the Standard set out below.
  • 6.2 reconciliation of cash flows arising from operating activities to operating profit or loss
  • 9.2 itemised disclosure relating to acquisitions
  • 9.4 itemised disclosure relating to disposals
  • 12.1(a)- policy for classification of cash items
  • 12.3 disclosure of restrictions on use of cash
  • 13.1 comparative information
• 1. Accounting Standards. ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.