SPACETALK LTD — Interim / Quarterly Report 2009

Apr 29, 2009

MGM Wireless posts quality March quarter.

30 April 2009

South Australian-based school communications group MGM Wireless Ltd announces solid progress on business process and productivity improvements whilst maintaining growth in the quarter to the end of March 2009.

During the January 1 – March 31st, 2009 period, the company's revenues were $ 446,408 (calculated using the company's new revenue recognition policy), as compared to $ 806,900 (using the old methodology) for the corresponding period in 2008. Revenue for the December 2008 quarter was $ 472,968. As for the same period last year, results were boosted by a seasonal increase in SMS text message sales in February.

The growth in the number of school sales for the March quarter was particularly pleasing, with a net number of 71 (as compared to 23 the previous quarter) additional schools going live, bringing the total number of live and operating schools to 328 (as compared to 257 at the end of last quarter). A net number of a further 94 schools were contracted in the current quarter (as compared to 92 last quarter) and will progressively go live in the coming months – which will eventually feed more revenue growth in the future.

The company is therefore pleased to report to shareholders this pleasing progress towards achieving its objectives of maintaining and extending growth whilst implementing cost reductions and cashflow improvement as it works towards achieving operational profitability.

About MGM Wireless Ltd and Messageyou, LLC

MGM Wireless Ltd is a public company with a market capitalisation of A$ 1.7 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

Monthly Cash Flow Report

Name of entity
MGM Wireless Ltd

ABN Month ended ("current month") 93 091 351 530 31 March 2009

Consolidated statement of cash flows

		Current month	Year to date
Cash flows related to operating activities		$A'000	(.9.months)
			$A'000
1.1	Receipts from customers	242	1,590
1.2	Payments for(a) staff costs	(113)	(1,095)
	(b) advertising and marketing	-	(38)
	(c) research and development
	(d) leased assets
	(e) other working capital	(93)	(731)
1.3	Dividends received
1.4	Interest and other items of a similar nature	-	-
	received
1.5	Interest and other costs of finance paid	(2)	(20)
1.6	Income taxes paid
1.7	Other	-	-
	Net operating cash flows	34	(294)

		Current month$A'000	Year to date(.9.months)$A'000
1.8	Net operating cash flows (carried forward)	34	(294)
1.9	Cash flows related to investing activitiesPayment for acquisition of:(a) businesses (item 5)(b) equity investments(c) intellectual property(d) physical non-current assets	(1)	(3)
1.10	(e) other non-current assetsProceeds 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
1.121.13	Loans repaid by other entitiesOther – Development expenses	-	(183)
	Net investing cash flows	(1)	(186)
1.14	Total operating and investing cash flows	33	(480)
1.151.161.171.181.191.20	Cash flows related to financing activitiesProceeds from issues of shares, options, etc.Proceeds from sale of forfeited sharesProceeds from borrowingsRepayment of borrowingsDividends paidOther (provide details if material)	-	295
	Net financing cash flows	-	295
	Net increase (decrease) in cash held	33	(185)
1.211.22	Cash at beginning of month/year to dateExchange rate adjustments to item 1.20	161	236(1)
1.23	Cash at end of month	50	50

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 month$A'000
1.24	Aggregate amount of payments to the parties included in item 1.2	28
1.25	Aggregate amount of loans to the parties included in item 1.11	-
1.26	Explanation necessary for an understanding of the transactions

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
• 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

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 month (asshown in the consolidated statement of cash flows) tothe related items in the accounts is as follows.		Current month$A'000	Previous month$A'000
4.1	Cash on hand and at bank	50	16
4.2	Deposits at call
4.3	Bank overdraft
4.4	Other (provide details)
	Total: cash at end of month (item 1.22)	50	16

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 April 2009 Director

Print name: Mark Fortunatow