TZ LIMITED — Capital/Financing Update 2021

May 20, 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

21 May 2021

ASX Announcement

TZ REPORTS STRONG GROWTH IN US PIPELINE

Highlights:

• TZ has received over USD$2.2 million in purchase orders from US customers since April 2021.

• Large purchase order received from one of the largest global software companies for major upgrade at USD$547k.

• The strong growth in the US pipeline demonstrates the demand for TZ solutions from US corporations and universities as the US economy starts its recovery from COVID19.

• Purchase orders cover a range of offerings including corporate package lockers, university mailroom lockers, retail click-and-collect lockers and TZ software licensing and electronic Smart Lock sales.

TZ Limited (ASX: TZL) (the Company), a leader in access control, smart lock and self-serve locker bank systems is pleased to provide shareholders with an update regarding its US business pipeline.

Purchase orders received from clients in the USA since the beginning of April now exceed USD$2.2 million. The purchase orders are from a mix of TZ’s existing base of blue-chip clients seeking to expand, upgrade and/or replace their access control and locker bank solutions with new TZ systems, as well as new clients committing to TZ SMArt lock and SMArt software platforms.

Microsoft, a leading US technology company and existing TZ customer, has placed a purchase order of USD$547k to complete a major hardware upgrade on its existing Locker Bank network. In the university sector, a leading US university has taken the decision to cancel a large order with a competing locker provider in favour of TZ’s mailroom and locker bank solution valued at USD$572k. This clearly demonstrates the market leading position that TZ has attained in the US university mailroom/package locker marketplace and the increasingly recognised value of TZ’s best-in-class software platform and electronic hardware solutions.

The strong conversion of the US pipeline to purchase orders reinforces TZ’s successful strategy over the last few years to substantially grow its installed user base and to expand its access to market through new distribution partnerships. This is further underpinned and supported by growing awareness of the company’s highly differentiated position and recognition for its leading-edge technology and software solutions, which is also supporting the growth of subscription-based annuity and recurring revenues.

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TZ Limited CEO and MD Scott Beeton said: “The improving rate and flow of new purchase orders into the business clearly shows that as our existing base of blue-chip US customers emerge from the COVID-19 pandemic, there is a heightened demand for TZ’s access control, smart lock and self-serve locker bank solutions. Encouragingly, the business is expanding its installed client base across all market sectors we operate in”.

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. The Closing Date for the Rights Issue is 28 May 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 market-leading 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 Investor Relations +61 404 656 408 Warrick.lace@reachmarkets.com.au

Scott Beeton CEO & Managing Director +61 400 252 425 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

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