TZ LIMITED — Capital/Financing Update 2012

Sep 13, 2012

TZ Limited ABN 26 073 979 272

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14 September 2012

Lodged by ASX Online

The Manager Company Announcements Offic e ASX Ltd Level 4, 20 Bridge Street Sydney, NSW 2000

Tender Award – Singapore Post and Rights Issue Capital Raising

Tender Award

TZ Limited ( “TZL” , the “Company” ) is pleased to announce that it has been awarded the contract for the supply, deliver y , design, development, installation, testing, documentation and commissioning of Singapor e Post’s smart locker network for the Singapore market.

Singapore Post is Singapore’s designated Public Postal Licensee (PPL), pr o viding quality postal and digital services and s olutions to the domestic and international mar k ets. It is also the leading logistics provider i n the domestic market, offering end-to-end solutions from fulfilment to delivery, with cover a ge to 220 countries. Singapore Post owns one of the largest retail distribution networks in Singapore including online stores, vPOST and C lout Shoppe. In addition to operations in Sin g apore, Singapore Post also has logistics foo t prints across the region via its subsidiary Quantium Solutions.

With increasing demand of e-commerce and parcel businesses, both e - retailers and consumers are looking for a ne w channel to post and retrieve shipments 24/7 at convenient locations. With Singapore bei n g one of the world’s most online-savvy communities with nearly full mobile and internet penetration, the deployment of Parcel Lockers across Singapore is a critical enabler for the effective management of first and last mil e deliveries.

“This is a significant win for the C ompany as we understand that the tender wa s aggressively contested by the major postal p a rcel locker suppliers. TZL is pleased to be successful on the global stage.” said Mark Bo u ris, Executive Chairman of TZ Limited. “Singa p ore strives to lead the world in technological developments and Singaporeans readily embra c e new technology and are very willing to try the newest products on the market. TZL h as a phenomenal opportunity to mak e a major statement in the region and show the world what its Packaged Asset Delivery tec h nology is capable of delivering.”

Capital Raising

TZL is also pleased to announce a pro-rata renounceable entitlement o ffer to raise approximately A$4.6 million bef o re capital raising expenses (the " Entitlement Offer "). The Entitlement Offer is expected to be fully underwritten by Patersons Secu r ities Limited,

TZ Limited ABN 26 073 979 272

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subject to the Company an d Patersons Securities Limited entering in t o a binding underwriting agreement. Th e Company expects that the parties will e nter into an underwriting agreement by 17 S e ptember 2012.

The proceeds raised will assist in funding the capital required to meet locker bank supply, commissioning and servicing th e contract obligations with Singapore Post.

Under the Entitlement Offer, eli g ible shareholders will be entitled to acquire 1 new ordinary share for every 3 ordinary sha r es held at a price of 10 cents per ordinary s hare to raise approximately A$4.6 million bef o re expenses.

All participants in the Entitlem e nt Offer will also receive one free attaching R ights Option exercisable at 14 cents at any time on or before 31 October 2013, for every tw o new shares issued. The underwriter to the Entitlement Offer will also receive one option on the same terms as the Rights Option, for every 3 new shares underwritten. These opti o ns are to be issued to the underwriter utilizing the Company's available 15% placement ca p acity, and to the extent the number of option s exceeds this capacity, shareholder approval w ill be sought prior to their issue.

The Entitlement Offer is renoun c eable and it is anticipated that eligible shareho l ders may sell their rights on the ASX. The D irectors intend to participate in the Entitleme n t Offer for at least part of their entitlements.

The Prospectus is anticipated t o be lodged with ASIC on or about 19 September 2012. The record date for the Entitlement O ffer will be announced on the date the Prospe c tus is lodged with ASIC.

The Entitlement Offer will be op e n to existing TZL shareholders with registered addresses in Australia, New Zealand and the United Kingdom on the record date.

Eligible shareholders may parti c ipate in the Entitlement Offer either in full or by accepting part of their entitlement. Eligible shareholders may also apply for additional sh a res over their entitlement, subject to a pro-rat a scale back if there is an over-subscription.

The Rights Options issued purs u ant to the Entitlement Offer are proposed to b e listed on the ASX.

The QVT Funds that hold con v ertible notes convertible into shares in the C o mpany have agreed that the conversion pric e of 35 cents applying to the series I converti b le notes and series III convertible notes and the conversion price of 42 cents applying to the series IIIB convertible notes and the se r ies IV convertible notes (still to be issue d , subject to shareholder approval), will not be reduced by the new shares being issued at 1 0 cents under the rights issue nor by any of th e options being exercised at 14 cents.

TZ Limited ABN 26 073 979 272

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About TZ Limited

TZ Limited is an Australian public company listed on the Australian Stock Ex c hange (ASX: TZL). Through its two main operating subsidiaries, Telezygology, Inc. and Product Development Technologies, In c ., TZ Limited employs a significant number o f professional resources deployed in 10 offic e s across five international locations, in busin e sses focused on technology commercializatio n and multi-disciplinary design and engineering services.

For additional information on TZ, please visit www.tz.net.

Yours faithfully

TZ LIMITED

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KENNETH TING

Director and Company Secretary