SPACETALK LTD — Interim / Quarterly Report 2015

May 4, 2015

ASX Market Announcements ASX Limited 20 Bridge Street Sydney NSW 2000

ASX Release MGM Wireless Ltd

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5 May 2015

March Quarter results. Strong growth continues, new products released.

• March quarter revenue up 30% on pcp

• March YTD sales revenue up 35% on pcp

• New product releases about to launch:

• Pinpoint Apple Watch Family Locator app

• MGM School Events and Bookings

Mobile technology specialist MGM Wireless (ASX:MWR) has reported strong growth in third quarter sales revenue and two new products about to launch in a quarterly update to the ASX today.

March Quarter Trading Results

$’000 Sales revenue Cash balances School numbers	Mar Qtr 15 Mar Qtr 14 Change	YTD Mar 15 YTD Mar 14 change
	403.0 310.4 ▲30% 1,112.4 823.3 ▲35% 1,156 1,109 ▲5%	2,609.0 1,931.9 ▲35%

Sales revenue for the 3 months to 31 March was $403,002, 30% higher than the 2014 March quarter sales of $310,418. The March quarter results brings FY15 year to date revenue to $2.61 million, 35% above the previous corresponding three quarter total of $1.93 million.

MGM Wireless CEO Mark Fortunatow said that the result was consistent with the seasonal trends of the school calendar and confirmed MGM Wireless was maintaining solid ongoing growth momentum, driven by product innovation and greater customer acceptance of MGM’s leading edge technology solutions. New school customers continue to sign up, with a 5% increase to 1,156 at end March.

Mr Fortunatow said that the March quarter was typically the weakest sales quarter for MGM Wireless due to the timing of the 5-week summer school holidays. End quarter cash at bank amounted to $1.1m, a 35% increase on last year.

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New Products about to launch

The MGM Pinpoint Family Locator app, which is to be launched within 1-2 weeks, was timed to coincide with the release of the Apple Watch. The app is the first major upgrade to MGM Pinpoint, and expands the company’s addressable market well beyond schools to the broader family care market by providing a technology solution for the safety and location of all family members.

“Advance interest in the MGM Pinpoint Family Locator app is very encouraging and we are keenly looking forward to the launch date later this month when it will go on sale in the Apple App Store in all major international markets,” Mr Fortunatow said.

The app will also be available in Android format and other ranges of smart watches.

MGM School Events and Bookings

The company is also pleased to announce the release of a major new product – MGM School Events and Bookings.

This exciting new product allows schools to create, schedule and manage events – including the all-important parent-teacher interviews – all tightly integrated with the Outreach+ smartphone messaging capability. Schools, teachers and parents can arrange and manage these important face-to-face meetings and manage other events using smartphone technology.

“This is a great leap forward in parent-teacher communication and productivity, dramatically enhancing the value of Outreach+,” Mr Fortunatow said.

“Using MGM Outreach+, schools inform parents by SMS (or email and even social media formats) of the event. Parents can then immediately make a booking for the event directly on their smartphone - all in one simple, integrated process.”

SMS messages to parents contain a personalised, secure link, which when clicked by parents takes them securely and directly to the event pre-loaded with all their relevant personal information such as classes, teachers and available seats.

In development for over 2.5 years, MGM School Events and Bookings has been very well received after demonstrations to a limited number of schools. One large customer has already purchased and implemented the system.

Last week, the Adelaide based School of Languages, a large education provider with complex operations and over 20 campuses, went live with an SMS to parents. Over 200 bookings were made and automatically processed by the app within hours of the message being sent. High satisfaction feedback was received from both school and parents.

For schools, MGM School Events and Bookings is a solution that delivers cost savings, large productivity improvements and better engagement within their community. For MGM Wireless it introduces another product to our suite that leverages off our existing messaging systems and increases revenues, message traffic and yields per customer.

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“Through developing and successfully launching products such as MGM School Events and Bookings, Outreach Plus and Pinpoint, we have been able to capitalise on the massive societal shift in adoption of smartphones with products that offer savings to schools and provide convenience, mobility and peace of mind for users,” Mr Fortunatow said.

“Each new product provides a solution to an identified need and offers MGM Wireless the prospect of another revenue stream from existing customer and user relationships. The financial benefits of this are apparent in our current year results.”

MGM Wireless, which has been listed on the Australian Securities Exchange for almost 12 years, announced December half-year revenue up 36% to $2.20 million and half year net profit after tax up 383% to $0.64 million.

Mr Fortunatow said the company will innovate and expand in the emerging Internet of Things sector to further develop new opportunities that use smartphone technology to enhance safety and security

FY15 Profit outlook

Results for the year to date have the company on track for a record full year revenue and earnings outlook, the major share of which is expected to have been generated in the first half.

About MGM Wireless Ltd and Messageyou, LLC

MGM Wireless is recognised in Australia and internationally as a pioneer of socially responsible technology-enabled school communications with a proven track record in designing, developing and successfully commercialising innovative world-class technology products.

The company’s patented SMS school communication solutions empower schools to communicate effectively with parents and caregivers using SMS text messaging to improve student attendance, welfare and safety. 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 and New Zealand use Messageyou software in their day-to-day operations.

For further information contact: MGM Wireless Ltd. - (ASX:MWR) Mark Fortunatow, CEO Mobile: 0421 328 984 Phone: 08 8104 9508 Email: mfortunatow@mgmwireless.com Web: www.mgmwireless.com