TZ LIMITED — Capital/Financing Update 2010

Jul 12, 2010

TZ Limited ABN 26 073 979 272

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13 July 2010

Lodged by ASX Online

The Manager Company Announcements Office ASX Ltd. Level 4, 20 Bridge Street Sydney, NSW 2000

Dear Sir/Madam

LOAN FACILITY

TZ Limited (the "Company" ) refers to its announcement on 28 June 2010 in which the Company announced that it had successfully negotiated a secured loan facility ( “Loan Facility” ) with QVT Fund LP and Quintessence Funds L.P. (the “QVT Funds” ) pursuant to which the QVT Funds had agreed to lend AUD$4,100,000 to the Company.

The Company announces that all conditions for drawdown under the Loan Facility have now been satisfied. The terms of the Loan Facility are as set out in the 28 June 2010 announcement, except that the parties have agreed that the amount loaned will be US$4,100,000 and the borrower under the loan facility is the Company’s wholly owned subsidiary, Telezygology, Inc ( “TZI” ).

The Company has guaranteed TZI’s obligations under the Loan Facility, which is secured by a first ranking charge over all of the assets of the Company (other than the Company’s shares in its subsidiaries Product Development Technologies Inc. and PDT Holdings, Inc.).

Drawdown of the entire principal of US$4,100,000 is expected to occur on 15 July 2010.

Yours faithfully,

TZ LIMITED

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Mark Bouris Chairman

Chicago (Operational Headquarters) 520 West Erie Street, Suite 100 Chicago, IL 60654 United States

Sydney (Registered Office) Level 11, 1 Chifley Square Sydney, NSW 2000 Australia

ASX: TZL Web: www.tz.net Email: info@tz.net