VINYL GROUP LTD — Interim / Quarterly Report 2011

Jul 28, 2011

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For immediate release

ASX CODE: MBO

Date: 29 July 2011

MBO ENDS THE FINANCIAL YEAR WITH RECORD ORDERS

• FY2011 orders increased 115% over previous year

• Completed Entitlements Offer and acquisition of Marine Rescue Technologies – Mobilarm now world’s largest man overboard safety company

• Portuguese fishing fleet contract significantly extends MBO’s footprint in commercial marine sector – initial order in expected broader roll-out of MBO’s technology

• Established operations in USA to service increasing demand

• Successful sea trials of Crewsafe V200 completes third phase of contract with US Navy – further validation of technology and contract to move to procurement in first HY2012

• MBO achieves strong organic growth –significantly builds recurring revenue base

Perth, Western Australia: Global marine safety equipment provider, Mobilarm Limited (ASX: MBO) today reported orders for the quarter ended 30 June of $545K, which was a 290% increase over the previous quarter. For the year ended 30 June 2011 orders totalled $1,294,000 representing a 115% increase over the previous year.

During the quarter, Mobilarm completed the acquisition of all the issued capital of UK-based Marine Rescue Technologies Limited (“MRT”), the company that has developed and marketed the leading marine personal locator beacon (PLB) brand, Sea Marshall.

The acquisition has created the world’s largest man overboard safety and technology company, with a strong presence in the defence, oil & gas, and commercial marine sectors worldwide. The transaction, which was successfully completed on 10 June 2011, was funded by an Entitlements Offer that raised approximately $3.2 million at 5 cents per share.

Significant contract wins in the last quarter included the supply of €54,000 (A$73,000) of Crewsafe V100 Maritime Survivor Locating Devices to the Portuguese National Fisherman’s Association. Driven by a Portuguese Government initiative, the contract comes ahead of upcoming legislation to mandate the use of radio distress beacons and flotation suits for commercial fisherman. It is

anticipated to lead to further orders and annual servicing and strengthens the Company’s presence in the EU. The Contract also mirrors the orders secured by MRT following similar legislation passed by the Spanish Government. Following the successful acquisition of MRT, future orders and revenue will be booked by Mobilarm, strengthening its overall pipeline.

A new office in Washington D.C has given the Company a permanent presence in the North American market and will support the expected roll-out of the Crewsafe V200 submarine escape and survival beacon for the United States Naval Sea Systems Command (“NAVSEA”). Mobilarm Inc will build the sales pipeline in the North American market and manage the existing contract currently in place with NAVSEA.

NAVSEA conducted field testing of the Crewsafe V200 - the third stage of its Sole Source contract with Mobilarm –at their Atlantic Underwater Testing and Evaluation Center (AUTEC) in June. The large scale capability demonstration and follow-up testing carried out independently by Mobilarm confirmed the device meets the design and performance criteria specified in the contract, marking one of the final milestones in the project. The device was officially launched at the NATO Submarine Escape and Rescue Working Group (SMERWG) reception in Amsterdam last month.

Mobilarm Chief Executive Officer, Lindsay Lyon commented: “In the previous quarter Mobilarm achieved significant milestones, both through strategic acquisition and organic growth from existing customers. We finished up FY2011 with record revenues and are well positioned to continue growing our sales pipeline in the current financial year.

“The successful acquisition of MRT is a coup for the Company, and as the world’s leading man overboard safety company, we expect our revenue base to significantly strengthen. The completion of the MRT acquisition is already having an impact to accelerate the Company’s growth.“

“Mobilarm’s expansion into the Americas and Europe coupled with acceptance by regulatory standards bodies is enabling the Company to secure increasing orders globally and deliver stronger support to our customers,” Mr. Lyon added.

-Ends-

Further details:

Lindsay Lyon Lorraine Coghill Chief Executive Officer Communications Manager Email lindsayl@mobilarm.com Email lorraineh@mobilarm.com

Mobilarm Ltd (MBO) ASX and Media Announcement

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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 the world’s largest company in the rapidly growing man overboard product category, with worldwide distribution of Crewsafe and Sea Marshall Maritime Survivor Locating Devices and associated marine safety equipment. The Company’s solutions enable operators in the offshore oil and gas, defence and commercial marine industries to remove risk from the workplace, 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 and UK 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.

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 Ltd (MBO) ASX and Media Announcement

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Appendix 4C Quarterly report for entities admitted on the basis of commitments

Rule 4.7B

Appendix 4C

Quarterly report for entities admitted on the basis of commitments

Introduced 31/3/2000. Amended 30/9/2001

Name of entity Mobilarm Limited

ABN 15 106 513 580

Quarter ended (“current quarter”)

30 June 2011

Consolidated statement of cash flows

	Consolidated statement of cash flows
	Cash flows related to operating activities 1.1 Receipts from customers 1.2 Payments for (a) staff costs (b) advertising & marketing (c) research & development (d) leased assets (e) Other working capital 1.3 Dividends received 1.4 Interest and other items of a similar nature received 1.5 Interest and other costs of finance paid 1.6 Income taxes (paid)/received 1.7 Rental recoveries 1.7 Purchases of inventory Net operating cash flows	Current quarter $	Year to date (12 months) ~~$~~
		312,216 (545,579) (27.582) (37,970) - (430,760) - 6,343 (13,773) (12,527) 21,412 (35,020)	919,915 (2,196,025) (157,279) (401,012) - (1,489,366) - 21,378 (17,306) 312,158 90,714 (326,040)
		(763,240)	(3,242,863)

• See chapter 19 for defined terms.

Appendix 4C Page 1

30/9/2001

Appendix 4C Quarterly report for entities admitted on the basis of commitments

	Current quarter $	Year to date (12 months) $
1.8 Net operating cash flows (carried forward)	(763,240)	(3,242,863)
Cash flows related to investing activities 1.9 Payment for acquisition of: (a) business ( item 5) (b) equity investments (c) intellectual property (d) physical non-current assets (e) other non-current assets 1.10 Proceeds from disposal of: (a) businesses (item 5) (b) equity investments (c) intellectual property (d) physical non-current assets (e) other non-current assets 1.11 Loans to other entities 1.12 Loans repaid by other entities 1.13 Other (provide details if material) Net investing cash flows 1.14 Total operating and investing cash flows	(1,674,390) - - - - - - - - - - - -	(1,674,390) - - (8,113) - - - - - - - - -
	(1,674,390)	(1,682,503)
	(2,437,630)	(4,925,366)
Cash flows related to financing activities 1.15 Proceeds from issues of shares, options, etc. 1.16 Proceeds from sale of forfeited shares 1.17 Proceeds from borrowings 1.18 Repayment of borrowings 1.19 Dividends paid 1.20 Share issue expenses Net financing cash flows	1,413,397 - 1,050,000 - - -	4,246,797 - 1,060,000 (10,000) - (184,285)
	2,463,397	5,112,512
Net increase (decrease) in cash held 1.21 Cash at beginning of quarter/year to date 1.22 Exchange rate adjustments to item 1.20 1.23 Cash at end of quarter	25,767 267,790 -	187,146 106,411 -
	**293,557 **	**293,557 **

• See chapter 19 for defined terms.

Appendix 4C Page 2

30/9/2001

Appendix 4C Quarterly report for entities admitted on the basis of commitments

Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities

1.24 1.25	Aggregate amount of payments to the parties included in item 1.2 Aggregate amount of loans to the parties included in item 1.11	Current quarter $A
		86,167
		-
1.26	Explanation necessaryfor an understandingof the transactions
	Payments were for salaries and director fees

Non-cash financing and investing activities

• 2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows

Nil

• 2.2 Details of outlays made by other entities to establish or increase their share in businesses in which the reporting entity has an interest

Nil

Financing facilities available

Add notes as necessary for an understanding of the position. (See AASB 1026 paragraph 12.2).

3.1 Loan facilities 3.2 Credit standby arrangements	Amount available $A	Amount used $A
	-	-
	5,000,000	-

Financing facilities available relates to the $5m Equity Drawdown Facility with Equity Partners Funds SPC as announced to the ASX on 16 September 2010.

• See chapter 19 for defined terms.

Appendix 4C Page 3

30/9/2001

Appendix 4C Quarterly report for entities admitted on the basis of commitments

Reconciliation of cash

Reconciliation of cash
Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.	Current quarter $A	Previous quarter $A
4.1 Cash on hand and at bank 4.2 Deposits at call 4.3 Bank overdraft 4.4 Deposits securing guarantees	92.470	102,790
	-	-
	-	-
	201,087	165,000
Total: cash at end of quarter(item 1.22)	293,557	267,790

Acquisitions and disposals of business entities

5.1 Name of entity 5.2 Place of incorporation or registration 5.3 Consideration for acquisition or disposal 5.4 Total net assets 5.5 Nature of business	Acquisitions (Item 1.9(a))	Disposals (Item 1.10(a))
	Marine Rescue Technologies Limited	Nil
	United Kingdom
	$2,006,430 in cash and $859,899 in deferred share compensation
	$820,057
	Manufacturer of Man Overboard Detection Systems

Compliance statement

• 1 This statement has been prepared under accounting policies, which comply with accounting standards as defined in the Corporations Act (except to the extent that information is not required because of note 2) or other standards acceptable to ASX.

• 2 This statement does give a true and fair view of the matters disclosed.

Sign here: Company Secretary

Date: 29 July 2011

Print name: David McArthur

Notes

• See chapter 19 for defined terms.

Appendix 4C Page 4

30/9/2001

Appendix 4C Quarterly report for entities admitted on the basis of commitments

1. The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.

2. The definitions in, and provisions of, AASB 107: Statement of Cash Flows apply to this report except for any additional disclosure requirements requested by AASB 107 that are not already itemised in the report.

3. Accounting Standards. ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.

4. See chapter 19 for defined terms.

Appendix 4C Page 5

30/9/2001