SPACETALK LTD — Investor Presentation 2010

Jul 21, 2010

July 2010 Corporate Presentation

Agenda

• MGM Wireless today
• Results
• Strategy and outlook

MGM Wireless

ASX Code:	MWR
Mkt Cap. ($ 0.009 share):	$ 1.99 mill
Debt	$ 0.30 mill
Cash	$ 0.20 mill

Directors

Mark Fortunatow - Chairman (Founder)

Mark Hurd (Founder)

John Dawkins (non Executive)

Shaun Collopy (non Executive)

Capital Structure

Shares on Issue:	220.6m
Options Outstanding:	14.1m	listed
		17.3m unlisted
No. Shareholders:	658
Top Shareholders:
Founders
Fortunatow	37.9m (17%)
Hurd	5.1m ( 7%)
Top 20 hold	104.9m (48%)

What we do

Australian and World Market leader in SMS-TEXT technology for Schools.

MGM Wireless solutions:

• 1. Improve student attendance & safety
• 1. Engage parent involvement
• 1. Reduce school costs

And ultimately improve student learning & social outcomes.

Revenue Model

• Recurring multi year subscription 3 years
• Annual software fee $ 2 10 pa per student
• Plus message fees
• Plus consulting revenues

70% of our annual revenues are recurring 30% is new business

2010 Strategic Financial Objectives were...

• 1. Deliver profit
• 1. Deliver revenue improvement
• 1. Achieve positive cash flow
• 1. Pursue ongoing R&D to create new growth opportunities

As we will show in this presentation we are delivering against these objectives

Customers & Operations

Primary, 6594

Secondary > 400 students, 1802

Secondary < 400 students, 1228

• Australia 609 School Customers
• New Zealand Awarded $A 1.1mill Grant Program
  • 20 school Customers signed in first 5 weeks
• Western Australian Department of Education State Contract
  • preferred supplier
• NSW Education (Sydney Region) Government Contract
  • preferred supplier
• 300+ individual school customers

A growing, stable & long term business. Plenty of opportunity remains.

Total Market Size 9,624 MGM Market Share 491 Current MGM market footprint Feb 2010 (555)

Revenues

Profits

2010 Positive Cash flows

Improving balances demonstrate underlying positive cash flows

Our Balance Sheet

2009 Current Liabilities Balance Sheet

No corresponding $ 2.8 million asset on Balance Sheet

2011 Strategy Moving Forward

Accelerating the Pace

• 1. Quantum revenue improvement
• 1. Continue improving free cash flow growth
• 1. Continue profit growth

Strategy Moving Forward

Accelerating the Pace

1 New Products

2. NZ contract

3. USA

4. Grow Australian market further

5. New Business Acquisition

Accelerating the Pace

MsgPool - Changing the Game

New, patented micro billing technology – Product complete, Q1 - Trials

• Free for School
• User Pays micro charge new business model
• Removes existing primary reason for schools not purchasing Perfect for US market

Likely better margins

Business process protected by patent

School Social Messaging Platform

Viral School Community Messaging – Product complete, Q1 - Trials

• Blends Web services with SMS
• Improved SMS traffic & revenues
• Ideal for all markets

Accelerating the Pace

New Markets

New Zealand

• $ A1.1mill, New Zealand Government ,12 month program to
• give NZ schools free access to MGM technology.
• MGM awarded preferred tendered (1 of 3)
• 20 schools signed in first 5 weeks. NZ Sales desk established
• Total available schools over 400

USA

• Rollout new Micro billing technology (MsgPool)
• Build on existing MGM Customer base in California and Arizona
• MGM US based Director in place
• Market Size: 55,000 schools (Australia 9,600)
• Web based Sales Delivery Model

Accelerating the Pace

New Tech Business

• Identifying new & emerging Tech opportunities
• Not necessarily in Education Sector
• Complementary wherever possible
• Ability to leverage off existing assets & skills

Grow Australian market further

• Plenty of opportunity remains
• Strong and large footprint
• Continue leveraging off market leadership position

Summary

MGM Today

• Profitable
• Growing Revenues
• Generating cash
• Established, Solid, strong, long term business ideal to underpin future growth

MGM in the Future

• Quantum improvement in Revenue, Profits & Cash
• More diverse
• New markets