VINYL GROUP LTD — Capital/Financing Update 2013

Feb 28, 2013

ASX CODE: MBO

For immediate release Date: 1 March 2013

PERFORMANCE SHARE RIGHTS

Mobilarm Limited advises that it has today allocated 11,000,000 performance share rights to employees of the Company. No share rights were allocated to any director or their associates. The terms of the performance rights are as follows:

1. One fully paid ordinary share will be issued for each performance rights that vests.

2. The performance rights are not transferrable.

3. The performance rights vest on the occurrence of all the following:

4. (a) The share price equaling or exceeding 10 cents on a 5 day VWAP basis, and

5. (b) The employee remaining an employee for a period of 12 month after (a) has been satisfied.

6. The rights will lapse should the employee be dismissed with cause.

7. A successful takeover will be an automatic trigger for the vesting of the shares pursuant to the rights.

David McArthur COMPANY SECRETARY