VINYL GROUP LTD — Capital/Financing Update 2011

Mar 15, 2011

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For immediate release

ASX CODE: MBO

Date: 16 March 2011

PLACEMENT/ ENTITLEMENTS ISSUE

On 28 February 2011 Mobilarm Limited announced that it would fund the acquisition of Marine Rescue Technologies Limited (MRT) by way of a placement and an entitlements issue.

The Company advises that it has completed a placement of 19,000,000 shares at 5 cents each to raise $ 950,000. This placement was made without shareholder approval pursuant to Listing Rule 7.1 of the ASX Listing Rules, and was made to sophisticated investors. The Company has also issued 2,254,363 shares at 5 cents per shares to pay outstanding debts and commitments. These shares were also issued pursuant to Listing Rule 7.1 without shareholder approval.

The Company wishes to advise that existing shareholders will be able to participate in the capital raising at 5 cents by way of an entitlement issue with 1 new share to be offered for every 2.7 shares currently held.

This will raise approximately $ 3.1 million if fully subscribed. The issue has been underwritten for up to $1,705,551 of shortfall, representing 55 % of the total entitlements offer. The following details are provided in relation to the underwriting:

-Underwriter: Dutch Ink (2010) Pty Ltd

-An underwriting fee of 6% of the total entitlements issue will be paid to the underwriter.

-15 million unlisted options will be issued to the underwriter, exercisable within 3 years at 10 cents if exercised within 12 months, 15 cents if exercised between 12 and 24 months, and 20 cents if exercised between 24 to 36 months. The issue of the options will be subject to shareholder approval.

• The key circumstances that will enable the underwriting to terminate the underwriting agreement, should they choose to do so, are:

• (a) a material adverse change to the Company’s operations, assets or financial position, or

• (b) The ASX all ordinaries index closes below 4,500.

Further details in relation to the timing of the entitlements issue will be advised shortly.

-Ends-

MOBILARM PRESS RELEASE

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Further details:

Lindsay Lyon Lorraine Hammacott Chief Executive Officer Communications Manager Email lindsayl@mobilarm.com Email lorraineh@mobilarm.com Tel. +61 (0)409 531 738 Tel. +61 (0)8 9315 3511 www.mobilarm.com www.mobilarm.com

About Mobilarm Ltd:

Headquartered in Perth, Western Australia, Mobilarm (ASX: MBO) is one of the world’s leading brands in the rapidly growing man overboard product category. The Company’s marine safety equipment solutions remove risk from the workplace in the offshore oil and gas, defence and commercial marine industries, where regulatory compliance, Occupational Health & Safety and Director’s Liability are the major drivers for improved employee safety and Duty of Care.

Mobilarm owns patent pending technology that protects and saves lives in the marine workplace and enables every maritime vessel to become a marine Search and Rescue asset.

The Company’s Australian-designed emergency locator beacons and crew monitoring alarm systems for use aboard vessels and other marine facilities generate automatic and immediate alerts in emergencies involving personnel, integrate with GPS and onboard navigation systems and provide in-water tracking of man overboard casualties in the water.

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Mobilarm has received enviable recognition for its products and design, winning two Seatrade awards for Safety, two Australian Design Awards and the Western Australia Worksafe Award.

Interviews with the CEO and further company information are available from the Mobilarm website: www.mobilarm.com/page/media_centre.html.

MOBILARM PRESS RELEASE

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