TZ LIMITED — Capital/Financing Update 2011

May 11, 2011

TZ Limited ABN 26 073 979 272

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12 May 2011

Lodged by ASX Online

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

Dear Sir/Madam

TZ Concierge™ Intelligent Locker System – Execution of Lease with The Sterling

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• Successful completion of 90 day evaluation of TZ Concierge™ at The Sterling Private Residences Tower in Chicago with an overall resident satisfaction rating of 4.8 out of 5.

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• New 10 year lease agreement signed with The Sterling Private Residences Condominium Association for the on-going deployment and maintenance of the System.

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• Lease terms include an up-front capital payment for establishment of the system, together with ongoing annual lease payments and annual maintenance payments for the provision of technical support and software maintenance services.

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• Strong validation of TZ’s packaged asset delivery solutions for the high density residential market and annuity based revenue model.

TZ Limited (the "Company" ) refers to its announcement on 18 November 2010 regarding the first commercial deployment the TZ Concierge™ Packaged Asset Delivery system by its wholly owned subsidiary, Telezygology, Inc. ( "TZI" ) under a trial arrangement with the Sterling Private Residences Condominium Association, Inc. (the "Association" ).

The Company is now pleased to advise that the 90 day evaluation trial of the System at The Sterling has been successfully completed and TZI and the Association have now entered into a binding 10 year lease agreement (the "Lease" ) for the state-of-the-art, software-controlled TZ Concierge™ Intelligent Locker System (the “System” ). The System comprising 48 locker units automatically manages, monitors and tracks the high volume of parcels — an average of 252 packages — delivered to residents at the property on a weekly basis.

The Sterling Private Residences Tower ( "The Sterling" ) is an architecturally significant building standing 50 stories tall and located near the Chicago River in the prestigious and popular River North area of Downtown Chicago, Illinois, USA. The building’s 389 units are home to more than 750 residents and as of January of this year, under a trial arrangement, The Sterling added a TZ Concierge Intelligent Locker System to its residents list of high-end amenities.

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

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

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

ASX Announcement

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The Sterling property management staff now simply deposit parcels directly into the System and the System automatically notify residents via SMS or email that their parcel is available for secure pick-up at their own convenience. The whole delivery process is tracked automatically end-to-end to ensure complete chain of custody from drop-off to pick-up. Residents are able to retrieve their parcels with the input of a self-selected six-digit password. Deliveries are completely secure.

Over the course of the trial, a number of enhanced features were added to the System based on customer needs including a facility to allow oversized packages to be redirected to the traditional mail room but still be tracked by the System for overall delivery integrity as well as the addition of a flat screen monitor installed in the mail room that provides residents with locker status providing a visual alert and reminder for package pick-up.

In the 90 days since initial deployment, the System has proven its value to the property management team and residents. The average time elapsed between package drop-off and pick-up has decreased by 54%, which means that tenants are picking up packages sooner than they were with The Sterling's previous system. A survey of registered residents who have used the System for the initial evaluation period indicates an overall satisfaction rating of 4.8 out of 5, with 24/7 access and the SMS or email notification being the top two system benefits. Over 65% of packages delivered are picked up after-hours which clearly validates the value proposition.

The term of the Lease is 10 years (absent earlier termination in accordance with the terms of the Lease), a significant increase on the expected three year renewable term announced on 18 November 2010. The Lease is structured with an up-front capital payment for establishment of the system, together with ongoing annual lease payments and annual maintenance payments for the provision of technical support and software maintenance services.

Paul Hoffman, Sterling resident and President of the Association's board said, “I quickly saw the return on the TZ Concierge™ investment when the concept was initially presented to the board. There is absolutely no downside to the installation. It’s as significant an amenity as our pool or our tennis courts. The TZ team made sure we had a solution that fits our needs perfectly. They researched our package logs, understood the needs of our residents and mapped the mix of parcel sizes delivered to make sure the locker sizes were right. The residents and management of this property really appreciate TZ’s attention to detail to customize a solution for our property.”

“This is a very important achievement for TZ” said TZI CEO John Wilson. “Not only does it strongly validate our packaged asset delivery solutions for the high density residential market, which is a substantial and new addressable vertical market for us, but it also demonstrates our ability to implement an annuity based revenue model which has the potential to significantly expand our commercial opportunities and open the door to TZ exploring the potential of offering a financing solutions to support implementation.”

“We have migrated our offerings from simple hardware sales transactions to hardware and software system solutions with combined services and on-going system maintenance and upgrade annuity revenue streams. This implementation is a great example of TZ delivering a total end-to-end solution and value-added product and service offering”.

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ASX Announcement

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With the successful introduction of TZ Concierge™ at The Sterling, TZ now plans to take advantage of the insights and is actively promoting the System to the Condo Boards of The Sterling’s sister properties as well as other properties in Chicago, New York and other major US city hubs. TZ is also planning System launches in key distribution countries including Canada, Europe and Australia.

For further information, please contact:

Kenneth Ting Executive Director and Company Secretary, TZ Limited Email: info@tz.net

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