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VINYL GROUP LTD Capital/Financing Update 2013

Aug 5, 2013

66014_rns_2013-08-05_d44cf049-3310-439b-9266-95331ccdf7ec.pdf

Capital/Financing Update

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6 August 2013

Dear Option Holder

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Mobilarm Limited - pro rata non-renounceable entitlement offer

As announced today, Mobilarm Limited (Mobilarm) is undertaking a pro rata non-renounceable entitlement offer of new full paid ordinary shares in Mobilarm (New Shares) to raise up to $1,711,775 (before costs, and subject to rounding) (Entitlement Offer). The Entitlement Offer is being made on the basis of 1 New Share for every 7 Mobilarm shares held at 5.00pm (AWST) on 26 August 2013 (Record Date) at an offer price of A$0.04 per New Share.

The terms and conditions of your options do not entitle you to participate in the Entitlement Offer unless you exercise some or all of your options into ordinary shares in Mobilarm (Shares) and are entered onto the Company’s share register before the Record Date. If your options were granted subject to vesting conditions, then you will only be able to exercise your options if those vesting conditions have been satisfied.

The purpose of this letter is to give you notice of the Entitlement Offer before the Record Date to allow you to exercise your options (if capable of exercise) should you wish to participate in the Entitlement Offer.

If you wish to participate in the Entitlement Offer in respect of Shares that would be issued to you on exercise of your options, then your notice of exercise, together with a cheque for the relevant exercise price, must be received by the Company Secretary at the registered office of the company no later than 5.00 pm (AWST) on 26 August 2013 in order to ensure that your Shares are allotted prior to the Record Date. Any Shares to be issued under a notice of exercise received after this date cannot be assured of being allotted before the Record Date.

If you do not wish to participate in the Entitlement Offer in respect of your options, then you do not need to take any action.

Details of the Entitlement Offer are contained in the announcement lodged with ASX today, and available at www.asx.com.au. If you have any questions about the Entitlement Offer, or you are in any doubt as to the action you should take in response to this letter, you should consult an accountant, stockbroker, lawyer or other professional adviser.

Please note that this letter is not an offer or an invitation to acquire Shares or to participate in the Entitlement Offer.

Yours faithfully

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David McArthur Company Secretary

TEL. +61 8 9315 3511 MOBILARM LIMITED (ABN 15 106 513 580) FAX. +61 8 9315 3611 38 GUTHRIE STREET PO BOX 1837 OSBORNE PARK 6916 WESTERN AUSTRALIA WWW.MOBILARM.COM [email protected]