TZ LIMITED — Capital/Financing Update 2021

May 27, 2021

Level 2, 40 Gloucester Street, The Rocks Sydney NSW 2000 Australia Telephone (+61) 2 9137 7300

www.tz.net

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TZ Limited ABN 26 073 979 272

28 May 2021 ASX Announcement

OUTLOOK FOR FY2022

TZ Limited (ASX: TZL) (the Company), a leader in access control, smart lock and self-serve locker bank systems is pleased to update the market regarding its outlook for FY22.

• TZ is increasing its recurring annuity revenue outlook as a result of new contracts that will take the recurring revenue base for FY2022 to approximately $3 million, about a 16% increase over and above the previous outlook of $2.5 million.

• In addition, purchase orders closed by TZ’s US business in this financial year has surpassed US$8.6 million and is on track to exceed US$9 million for financial year 2021. A significant share of this will be recognised and completed in FY2022.

• The Company is also anticipating a strong FY2022 in Australia with two projects in final contract negotiations that would see supply of SMArt Locks, Electronics and Software for over 6,000 day lockers. Expected revenue is over $2 million for the collective hardware sales with ongoing annuity services in excess in aggregate of around $150,000 per annum over a minimum term of 3 years.

The positive outlook is a signal of a recovering marketplace, as economies come out from under the COVID-19 cloud and TZ solutions are seen as best-in-class options to support the dynamic and flexibility demands of the changed workplace. It also demonstrates the increasing preference that customers have for cloud based fully managed solutions that offer a bundle of services across hosting, monitoring, maintenance and software subscription.

TZ Limited CEO and MD Scott Beeton said: “The growth in our US and Australian sales pipelines provides a very positive outlook for the TZ business in FY2022. Considering the Company’s focus to drive recurring services business and software subscription licensing, the solid foundation of locked in annuity-based service deals and the increasing preference for subscription-based offerings from our customers bodes very well for TZ to achieve its expectations for exponential growth in its recurring everyday revenues.”

Level 2, 40 Gloucester Street, The Rocks Sydney NSW 2000 Australia Telephone (+61) 2 9137 7300

www.tz.net

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TZ Limited

ABN 26 073 979 272

Rights Issue

On 28 April 2021 TZ Limited announced a Non-Renounceable Rights Issue. The Rights Issue will raise up to $7.06 million (before costs) with proceeds to pay down debt. Shareholders have the opportunity to buy at 12 cents representing a 25% discount to the volume weighted average price (VWAP) over the 30 trading days before the rights issue was announced. The Closing Date for the Rights Issue is 7 June 2021.

Shareholders can request an electronic copy of their personalised Entitlement Offer - - - application form at - https://tz.investorportal.com.au/request rights issue form/

Join a briefing

Join Scott Beeton, CEO and MD, for an investor briefing where he will discuss TZ Limited’s A-list client base, the growing e-commerce market and how TZ’s marketleading software is uniquely positioned as a category leader.

Click here to register for a briefing - https://tz.investorportal.com.au/webcast/

For further information, please contact:

Warrick Lace Scott Beeton Investor Relations CEO & Managing Director +61 404 656 408 +61 400 252 425 warrick.lace@reachmarkets.com.au s.beeton@tz.net

This announcement has been approved by the board of directors.

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