SPACETALK LTD — Regulatory Filings 2021

Apr 18, 2021

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ASX Announcement Spacetalk Ltd. (ASX: SPA) 19 April 2021

Spacetalk launches B2B2C channel for LIFE seniors device

Highlights

• Spacetalk launches B2B2C channel for LIFE smartphone watch for older Australians in collaboration with leading aged and home care service provider ACH Group

• ACH Group attracted by LIFE’s potential to support older people to live independently and safely, improving quality of life for wearers and their carers

• B2B2C launch coincides with the enablement of new Artificial Intelligence Fall Detection and Medical History Alert for LIFE, developed in collaboration with ACH Group

• Pricing for LIFE repositioned at $399 + $7.99 per month for the paired Spacetalk App, to be able to be funded for eligible persons through the Government’s Home Care Packages (“HCP”) Program, Commonwealth Home Support Programme (“CHSP”) and/or National Disability Insurance Scheme (“NDIS”)

• LIFE will continue to sell retail: JB Hi-Fi commencing a new marketing campaign promoting LIFE as a wearable safety device eligible for Government funding | Harvey Norman to commence ranging LIFE at its 121 bricks and mortar stores in Australia and on-line from April 26, 2021

Spacetalk Ltd. (ASX:SPA) (“Spacetalk” or “Company”), developer of innovative technologies that keep families safe and connected, is pleased to announce the expansion of Spacetalk LIFE’s distribution via a B2B2C model in partnership with ACH Group.

ACH Group is one of Australia’s leading aged care organisations, employing more than 1,800 staff and supporting more than 20,000 older people in South Australia and Victoria to live a good life at home, in the community, in residential care and in independent living units.

First launched in June 2020 as an all-in-one smartphone watch with GPS for older Australians, Spacetalk LIFE’s potential to support the journey of ageing – enhancing independence, healthy living, social connectivity, and safety, while providing reassurance and peace of mind to family and friends – has attracted significant interest from aged care and home care providers, NDIS providers and Occupational Therapists (“OTs”).

Spacetalk Ltd. (ASX:SPA) ABN 93 091 351 530 The Parks, Suite 13, 154 Fullarton Road, Rose Park, South Australia 5067 P: (08) 8104 9555 spacetalk.com.au

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ACH Group CEO Frank Weits commented: “ACH Group recognised that LIFE could fill a gap in the market. Together with its newly incorporated suggested improvements we believe this high quality, stylish smartphone watch will offer peace of mind to older people.”

Spacetalk CEO Mark Fortunatow said: “As a technology innovator, receiving feedback from an industry leader is extremely valuable. We listened, and set about incorporating ACH Group’s suggestions, which included fall detection technology and re-positioning pricing to meet the eligibility requirements for Australians to access Government funding through the Commonwealth Home Support, Home Care and NDIS programs. Our commercial arrangement with ACH Group to sell the device and the accompanying Spacetalk App opens an exciting new B2B2C distribution channel for LIFE and broadens its market reach.”

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Fall Detection for LIFE devices is in the final stages of completion, augmented with Artificial Intelligence that uses machine learning to continually improve its high accuracy as more people use the devices. This is ground-breaking new technology and a world-first for devices designed for older people. The Artificial Intelligence Enhanced Fall Detection will be enabled automatically on all LIFE devices via a free over-the-air upgrade on May 31, 2021.

Other LIFE features include SOS alert, GPS locator, 4G phone, water (shower) proof, medication and other reminders, step counter, wearer’s medical history information for emergency responders, and a carer-family app to allow easy communication and enhanced interactions at the wearer’s discretion.

Spacetalk Ltd. (ASX:SPA) ABN 93 091 351 530 The Parks, Suite 13, 154 Fullarton Road, Rose Park, South Australia 5067 P: (08) 8104 9555 spacetalk.com.au

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Spacetalk LIFE has an existing growing customer base, with NDIS registered provider Mike Snudden of Marmic Meditrak observing: “LIFE has given our NDIS clients a new level of confidence allowing them to ‘live life’ and maintain their independence in the community. LIFE is fully Government funded where it is deemed a reasonable and necessary support need, making it an extremely useful and attractive purchase for both the wearer and carer.”

Unlike other wearable safety devices such as pendant trackers, which can carry a stigma that the wearer requires support, Spacetalk LIFE is a stylish smartphone watch. In fact, Spacetalk has built a global reputation for being a design led Company, combining beautiful industrial design with hardware and software engineering breakthroughs in their elegant built-for-purpose smartphone watches. The Company earlier this month won the coveted international Red Dot Design Award, one of the world’s largest global design competitions, for Outstanding Product Design in 2021.

LIFE will retail at a price of $399, approximately 40% less than other lower featured devices currently available, and requires pairing with the Spacetalk App for a $7.99 per month fee and a 4G SIM. If eligible, the cost of the device and the first 12 months of the App fee may be supported by Government funding.

In addition to the B2B2C launch with ACH Group, LIFE will continue to sell retail. It is available now through www.spacetalkwatch.com and JB HiFi, which will commence a new marketing campaign promoting LIFE as a wearable safety device eligible for Government funding. Harvey Norman will commence ranging LIFE at its 121 bricks and mortar stores in Australia and on-line from April 26, 2021.

Spacetalk Ltd. (ASX:SPA) ABN 93 091 351 530 The Parks, Suite 13, 154 Fullarton Road, Rose Park, South Australia 5067 P: (08) 8104 9555 spacetalk.com.au

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LIFE will be available for purchase through ACH Group from 1 June 2021 when eligible customers may access LIFE using funds through the CHSP, HCP or the NDIS.

OTs can self-prescribe for funding to eligible persons through the CHSP. The CHSP provides funding for a broad range of entry-level support services to assist older people aged 65 years and over (50 years and over for Aboriginal and Torres Strait Islander people) and who have functional limitations (including cognitive), to remain living independently at home and in their community. ACH Group, other aged care and home care providers, and OTs – a number of which Spacetalk is in discussions with – assist eligible older Australians navigate through this process, including lodging referrals on their behalf for funding through My Aged Care.

Following a My Aged Care ACAT assessment, a Home Care Package may be approved and assigned to an older person when more than basic support is required, and offers a coordinated approach with access to a greater range of services, aids and equipment. Packages range from Level 1 to Level 4, and are tailored and designed with the older person, their support network (if applicable) and an experienced Advisor to support them to stay living independently in their own home.

Spacetalk LIFE also qualifies for NDIS funding for eligible persons. The NDIS is an Australian Government scheme that funds costs associated with disability. The scheme was legislated in 2013 and went into full operation in 2020. The scheme is administered by the National Disability Insurance Agency and overseen by the NDIS Quality and Safeguards Commission, and entitles people with a "permanent and significant" disability (under the age of 65), to full funding for any "reasonable and necessary" support needs related to their disability. Funding is allocated to the individual, and the individual or their guardian chooses which providers supply the funded goods and services (subject to certain restrictions). The scheme is entirely publicly funded; recipients do not purchase or contribute to an insurance policy. The scheme is not means-tested. If eligible, the cost of the device including the first 12 months of the App fee may be funded by the Government.

ACH Group CEO Frank Weits said: “Spacetalk LIFE is a fantastic example of two industry leaders collaborating to bring new, leading-edge and world-class aged care technology to market. LIFE can increase an older person’s confidence and their safety, whilst supporting independence, health living, and social connections.”

Spacetalk CEO Mark Fortunatow said: “We are delighted to be collaborating with ACH Group, who are a leading and supportive partner with a strong focus on improving the journey of getting older. Spacetalk LIFE makes an important contribution for older people to live life to the fullest, with practical communication features encouraging independence and ensuring safety. LIFE is built-for-purpose without compromising the dignity of older people, with wearers of the sophisticated and elegant LIFE smartphone watch in complete control while providing peace-of-mind for their carers.”

Spacetalk Ltd. (ASX:SPA) ABN 93 091 351 530 The Parks, Suite 13, 154 Fullarton Road, Rose Park, South Australia 5067 P: (08) 8104 9555 spacetalk.com.au

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MARKET

The size of the market for older people is large and projected to increase more rapidly over the next decade. Spacetalk LIFE caters to this expanding population, providing technology infrastructure for older people to live connected, independent and purposeful lives. COVID-19 has put a spotlight on the care for older people, highlighting the growing importance of family support and online connectivity in maintaining social interactions and safety. We believe this structural thematic has become entrenched and strongly support Spacetalk devices’ core business value proposition of providing socially responsible technologies for families to feel safe and connected, while enjoying independence and confidence.

This announcement has been authorized by Spacetalk CEO Mark Fortunatow.

Spacetalk Ltd. (ASX:SPA) ABN 93 091 351 530 The Parks, Suite 13, 154 Fullarton Road, Rose Park, South Australia 5067 P: (08) 8104 9555 spacetalk.com.au

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For more information, please contact:

Vivek Miranda

Investor Relations and Corporate Development VMiranda@spacetalkwatch.com M: +61 401 462 712

About Spacetalk Ltd.

Spacetalk Ltd. (ASX: SPA) is a global technology provider of secure communication solutions for families to stay connected and protected.

Spacetalk’s range of all-in-one smartphone GPS watches for children (Spacetalk Kids and Spacetalk Adventurer) and seniors (Spacetalk LIFE) are purpose built with tailored features, design qualities and best practice data encryption, security and privacy technologies, for families to stay confidently connected. Fun, fashionable, secure and technologically advanced, Spacetalk devices deliver confidence for the child and senior wearer, enhanced controls for the guardian, and engaging functionalities for the whole family to stay connected.

The Spacetalk App is designed to provide a family environment for fun, engaging and secure media consumption beyond its device control functionalities for the guardian. Every linked contact – parents, grandparents, extended family members and friends – regardless of whether they are Android or iOS users, can interact with linked Spacetalk devices and each other through the Spacetalk App.

Spacetalk was founded in 2001 and listed on the ASX in 2003 as MGM Wireless Limited, which developed the world’s first SMS student absence notification platform for schools and went on to become Australia’s most successful school messaging Company. On 12 November 2020 the Company changed its name to Spacetalk Ltd.

To learn more about the Spacetalk devices and app platform, and the Company, please visit: https://www.spacetalkwatch.com/. Investor Centre: https://investors.spacetalkwatch.com/.

About ACH Group

ACH Group is a leading not-for-profit aged care organisation that has been offering services to support good lives for older people in South Australia since 1952.

As well as accommodation options across Adelaide, the Fleurieu Peninsula and East Melbourne, the group offers a range of health, wellbeing, respite, and support services, help at home and social activities.

Our 1800 specialist staff and hundreds of volunteers share the belief that older people should be valued and respected, connected to their communities and in control of their lives.

Spacetalk Ltd. (ASX:SPA) ABN 93 091 351 530 The Parks, Suite 13, 154 Fullarton Road, Rose Park, South Australia 5067 P: (08) 8104 9555 spacetalk.com.au