TZ LIMITED — Interim / Quarterly Report 2011

Jul 28, 2011

ASX Announcement

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SHAREHOLDER UPDATE – June Quarter 2011

The quarter ended 30 June 2011 (the "June Quarter" ) was an invigorating quarter for TZ Limited as a number of significant sales came to fruition. We believe that these deals, coupled with a strong pipeline of considerable opportunities coming into the 2012 financial year, solidify our place as the company to watch in the sector.

TELEZYGOLOGY, INC. ("TZI")

TZI Highlights

• Unaudited management accounts indicate that the TZI business invoiced and shipped approximately US$600,000 in sales during the June Quarter, which gives a year end top-line revenue of approximately USD $1.24 Million.

• The quarter-to-quarter sales growth has been significant, setting up the 2012 financial year with a promising pipeline of large scale opportunities.

• The June Quarter was characterized by successful deployments of the IXP Centurion Server to influential key customers in the US, Canada and Europe and also the first major deployment of our TZ Courier Packaged Asset Delivery System to corporate clients on the West Coast of the USA.

• The TZI business has also received its first orders for IXP and PAD solutions in Australia with installations scheduled for late-August 2011.

Update on Infrastructure Protection Inc. (IXP)

The June Quarter saw impressive sales momentum with the specification of our infrastructure protection solutions on a number of major projects, anticipated purchase orders being received from a number of high profile government and corporate customers and very important and visible deployments of our Centurion Server offering across several geographic markets.

The successful deployment of our total hardware and software solutions at major colocation facilities not only provides influential endorsement of TZI’s product offerings to the targeted market segment but also provides a hands-on and positive experience of TZI’s value proposition to a wide range of corporate clients housed at these facilities who are seeking granular level security of their IT assets.

Our program to partner with OEM cabinet manufacturers is progressing in all regional markets and significant deployments of several hundred “TZ Ready” cabinets have been successfully delivered to major customers across the US and Canada. Through the formalization and expansion of these OEM relationships, we are gaining traction in providing the market with access to a range of “TZ Ready” cabinets through multiple providers with factory installed TZ SlideHandles™ and interconnect modules offering high value added utility to our data center customers.

ASX Announcement

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A number of landmark deployments are in the pipeline for the quarter to 30 September 2011 based on specified projects which are now in implementation phase, including significant potential sales in Australia. These potential deployments indicate an ascending awareness of the Company’s products across multiple markets and we will continue to cultivate key relationships in order to build global brand awareness.

We will release announcements regarding the details of these deployments to the market once the details are finalized and if we can obtain requisite approvals for disclosure from our end customer.

Management believes that increasing industry knowledge and public awareness of our solutions demonstrable by the steady pipeline growth and system specifications puts the Company in a strong position for continued IXP revenue growth into the 2012 financial year.

Update on Packaged Asset Delivery Inc. (PAD)

The June Quarter saw TZI’s Packaged Asset Delivery business begin to convert its substantial pipeline of opportunities into revenue. During the June Quarter we deployed a number of locker banks to major West Coast corporate clients with a sales value of over USD $250,000 and we’re continuing to see a steady stream of interest from potential customers around the world.

In addition to new inquiries, it is exciting to report that we are executing agreements representing repeat purchases on the back of successful system trials as customers explore expansion opportunities to accommodate other buildings, departments or extensions to a greater number of end-user recipients.

With a number of corporate trials currently underway in North America and Europe, there is a high level of business prospects and management anticipates that sales levels will increase as we see expanded levels of deployment with current and/or new customers.

With parcel delivery continuing to increase and last mile delivery becoming a major strategic consideration for logistics providers, interest in our Packaged Asset Delivery solutions continues to grow and we are currently in negotiations with a number of players to explore strategic deployment opportunities.

Once these negotiations are finalized and if we can obtain the requisite approvals for disclosure from our end customer, we will release the details of the agreements to the market.

Other News

We have been working to establish our San Francisco operations and are in the process of finalizing the relocation of certain staff members as well as recruiting West Coast based resources to build a significant San Francisco presence and leverage the developing customer base. San Francisco is a hub for many corporations that now represent our customer base, so being able to readily support deployments and service them is a critical enabler for future business growth.

ASX Announcement

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We have also taken the opportunity to relocate our Chicago operations from its Erie Street location to a more cost effective office/warehouse premises in the Chicago West Loop which better facilitates the fulfillment aspects of our business such as being able to hold inventory, efficiently manage order deployment, enable short-run production and support QA testing.

TZI has made a significant effort to put a strategic focus on the marketing of the company, which includes an upgrade of our web presence and the creation of new marketing collateral. This process has just begun and significant effort will continue to be invested in promoting the company and its products in the coming months.

The primary goal for the TZI business during the preceding two quarters has been to establish a solid foundation to execute and support a significant sales business. Management believes that our current success in identifying opportunities, cultivating customer relationships and building a track record of successful deployments places us in a concrete position to generate strong revenue growth during the 2012 financial year.

Product Development Technologies, Inc. ("PDT")

PDT Highlights

• Unaudited management accounts show revenues for the June Quarter of US$5.4 Million or 139% of plan and 124% of the same period in 2010.

• Unaudited management accounts show that full year revenue hit an all-time high of just over US$21M.

The June Quarter saw continued top line growth with PDT capitalizing on its reputation in the industry as a full service design firm. This continued growth has been fueled by existing clients as well as new business in the US and Europe.

To take advantage of this growth, PDT has realigned its management structure to three main verticals to bring clarity to our Military, Medical Devices and Consumer Products business with streamlined internal processes.

In addition to an investment in new people and marketing initiatives, management has also invested in facilities, tools and quality systems. For example, we have established a new and secure area for ITAR projects which is a US Department of Defense mandate for sensitive projects where high levels of security clearance are required. With this new location together with ITAR approval, PDT is well positioned to take advantage of high security Government projects from both new and existing customers. This represents a high barrier to entry for our competitors.

One recent project saw PDT complete the design of a device with iPhone, Wi-Fi and GPS capability which weighs 8 pounds to replace 200 pounds of traditional military communications equipment. This project was delivered successfully on time and on budget.

ASX Announcement

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PDT has also invested in Android based projects as it is the dominant system for most new projects. One project involving a highly complex medical device for managing diabetes has significantly increased our knowledge base and experience in this area.

Our realignment of the medical device business also takes full advantage of the trend for major medical corporations to fully outsource their development needs. To support this we are developing in-house expertise on FDA requirements and will align internal systems and process with the needs of both the FDA and our clients.

We have also adopted a new and aggressive marketing approach using the web, direct qualified sales calls and social networking to sustain the growth of our business and continue to build the PDT brand.

All in all the 2011 financial year was a significant year of growth for PDT and we have a solid foundation for the 2012 financial year, with US $5 Million already in backlog.

Best Regards,

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John Wilson CEO, Telezygology, Inc.

Mark Schwartz CEO, PDT Inc.