TALIUS GROUP LIMITED — Capital/Financing Update 2020

Jan 28, 2020

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HSC awarded ACH Group tender to upgrade Nurse Call Systems in South Australia

28 January 2020

• HSC awarded tender to provide next-generation data-driven assisted care solution for 9 Residential Aged Care sites

• HSC providing high-level data dashboard of residents to ACH Group

• Project delivery of first residential aged care site underway

HomeStay Care Limited (ASX: HSC or Company ) is pleased to announce the Company has been awarded a tender to upgrade technology at the Aged Care & Housing Group Inc ( ACH Group ) multiple sites of residential care in South Australia ( Project ).

The ACH Group tender sought a solution targeting efficiency and optimisation with the use of IoT technology across its nine residential aged care sites. These sites currently include more than 800 residents collectively. An extensive process was undertaken by the ACH Group to identify the Essence APAC IoT technology as the appropriate solution for the Project.

The Project involves the installation, service and maintenance of assistive technology to the nine residential aged care sites by HSC on a site by site basis, with each site being the subject of a separate purchase order. The Company has provided tender pricing for delivery at all nine sites which is fixed until December 2020, with the provision of technology at each site being the subject of a separate purchase order (which shall be accompanied by standard delivery terms and conditions). Ongoing licensing and support services will also be provided by HSC in relation to its assistive technology as relevant. The Project will be delivered for each site on standard commercial terms including any setup; hardware purchase; annual licensing and support; professional service; and transaction fees applicable (refer to Appendix A for further details).

The Project commences with the rollout of the initial Kapara site in Glenelg, South Australia for 137 residents including the deployment of the Essence APAC multi-site cloud portal. A purchase order for approximately $500,000 has been received for the initial site and project set up which has been invoiced in accordance to the project delivery schedule. Delivery of the first site and delivery of the multi-site platform are underway with ‘go live’ for first residents to commence using technology scheduled for this quarter. The Company will announce further material purchase orders in respect of other ACH Group sites as and when they are made.

Pursuant to the Project, HSC will provide an assistive technology platform powered by IoT devices to each of ACH Group’s residential aged care sites. The assistive technology being provided for the Project consists of the Essence Smart Care Call Platform, comprising of the Essence care panel, allowing 2-way voice communication with each resident area being fitted with the latest Essence Voice Activated Nurse Call stations, along with a range of activity sensors to provide proactive data analysis, as well as human monitoring, to determine residents' routines and detect anomalies. These early insights allow for better decision-making by care providers, allowing more focused service, minimising unnecessary care and facilitating care services more responsively.

ACH Group is a not-for-profit community organisation promoting opportunities and services to support good lives for older people. The organisation has provided aged care services for more than 65 years in South Australia. ACH Group is known as one of Australia’s leading aged care organisations, with more than 1700 staff and 400 volunteers , supporting over 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.

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This announcement has been authorised by the Board of Directors of HomeStay Care Limited.

Investor Enquiries

Jane Morgan Melanie Ross Investor Relations Company Secretary 0405 555 618 08 6188 8181 jm@janemorganmanagement.com.au investor@homestay.care

About HomeStay

The HomeStay assistive technology platform allows elderly and people with disabilities to live independently in their own home for longer, through the use of data analysis, as well as human monitoring, to determine residents' routines and detect anomalies. These early insights allow for better decision-making by care providers and families, allowing more focused service, minimising unnecessary care and facilitating welfare checks in a more responsive manner .

HomeStay helps protect and connect our elderly and people with disabilities with a scalable healthcare technology platform that allows them to live in their homes for longer .

FORWARD LOOKING STATEMENTS

Certain statements contained in this ASX release, including information as to the future financial or operating performance of the Company and its projects, are forward looking statements. Such forward looking statements:

• (a) are necessarily based upon a number of estimates and assumptions that, while considered reasonable by the Company, are inherently subject to significant technical, business, economic, competitive, political and social uncertainties and contingencies;

• (b) involve known and unknown risks and uncertainties that could cause actual events or results to differ materially from estimated or anticipated events or results reflected in such forward looking statements; and

• (c) may include, among other things, statements regarding estimates and assumptions in respect of prices, costs, results and capital expenditure, and are or may be based on assumptions and estimates related to future technical, economic, market, political, social and other conditions. The Company disclaims any intent or obligation to publicly update any forward-looking statements, whether as a result of new information, future events or results or otherwise.

The words “believe”, “expect”, "contracted”, “anticipate”, “indicate”, “contemplate”, “target”, “plan”, “intends”, “continue”, “budget”, “estimate”, “may”, “will”, “schedule”, “planned” and similar expressions identify forward looking statements. All forward looking statements contained in this ASX release are qualified by the foregoing cautionary statements. Recipients are cautioned that forward looking statements are not guarantees of future performance and accordingly recipients are cautioned not to put undue reliance on forward looking statements due to the inherent uncertainty therein.

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Appendix A – Updated material summary of the Agreement

In accordance with ASX guidelines, HomeStay provides the following information:

Description of the Agreement		The agreement that has been entered into comprises: - a set of delivery terms and conditions that relate to the delivery of goods and services to be provided by HSC (with Home Service Solutions Pty Ltd being the contracting entity) to the ACH Group (on a per purchase order basis as provided by ACH Group to HSC); and - a standard license and support agreement that shall apply to all relevant products (i.e., those which were outlined in the tender document provided by HSC to ACH Group), (together theAgreement). The Agreement provides contractual terms and conditions that the parties will be able to rely upon in relation to the provision of the Essence APAC Smart Facility Solution at multiple sites pursuant to the Project.
Material terms of the Agreement		Material terms of the Agreement are as follows: Delivery Terms and Conditions - The pricing of goods and services (which are to be the subject of separate purchase orders) will be in accordance with the tender document provided to ACH Group by HSC, and those prices shall remain fixed until December 2020 (unless HSC can show that a price increase is warranted by the impact of a 3rdparty supplier). - The delivery terms and conditions also contain provisions relating to: delivery of goods; the passing of risk; warranties; dispute resolution; and confidentiality, that are considered standard for an agreement of this type. License and Support Agreement - ACH Group must pay the price and ongoing fees for: software licenses and services as applicable at the time that ACH Group provides HSC with a purchase order. - The term is from the date of the agreement and continues for the serviceable life of the product whilst in use (and may be terminated earlier if the solution is no longer required or fit for purpose, or for breach by either party (if not remedied within 15 days after receipt of notice of breach)). - Subject to the license terms and the payment of all fees, HSC grants ACH Group a limited, personal, non-exclusive, non- transferable,non-assignable license,without the right to

		sublicense, to use the software for the sole and exclusive purpose
		of providing ACH Group with raw data gathered through the use
		of software and products used in client areas.
		- No rights or licenses are granted by HSC to ACH Group by
		implication with respect to the software or any proprietary
		information or patent.
		- HSC warrants that during the Term, the software will materially
		comply with its specifications.
		- HSC’s support will be provided on a 3-level system with the first
		level of support to be provided by ACH Group, and the second
		and third levels of support to be provided by HSC to ACH Group.
		- The license and support agreement also contain provisions
		relating to: terms of use, hosting, and setup; compatibility with
		ACH Groups business requirements; confidentiality; privacy; and
		customer data, that are considered standard for an agreement of
		this type.
	Significance of the Agreement	The Agreement has been entered into with a well-respected primary
		aged care provider. The total tender value for the Project for delivery
		at all nine ACH Group sites is fixed until December 2020, with the
		provision of technology at each site being the subject of a separate
		purchase order. The total amount that will be received pursuant to the
		Agreement will depend on the number of purchase orders received
		from ACH Group.
		An initial purchase order for approximately $500,000 has been issued
		by ACH Group to HSC pursuant to the tender for stage one (which is
		comprised of a one-off set-up cost, annual server fees, and the Kapara
		site setup in Glenelg, South Australia). As noted above, the purchase
		order shall be governed by the standard delivery terms and conditions,
		and the relevant products shall be governed by the standard license
		and support agreement (as applicable).
	Other material information	There is no other material information.
	relevant to assessing the impact of
	the Agreement on the price or
	value of HomeStay securities
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