XERO LIMITED — Capital/Financing Update 2014

Aug 21, 2014

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XERO LIMITED (XRO) MARKET RELEASE

22 August 2014

Xero reaches over 147,000 customers in Australia

Leading online accounting software company Xero Limited (XRO) announces that it has almost doubled customer numbers in Australia in the last 12 months, with over 147,000 paying customers in Australia.

Recognition of this milestone and strategic partnerships will be an important feature of Australian MD Chris Ridd’s keynote at Xero’s annual partner conference Xerocon in Sydney today. Xerocon is expected to be the largest accounting technology conference in Australia this year, with 1,300 paying attendees and 82 exhibitors attending.

Xero will also announce that from September this year, Telstra, one of its strategic partners, will be giving its business mobile customers the opportunity to experience the benefits of cloud computing first hand, by offering eligible customers a six month free trial of Xero.

In addition to this continued collaboration with Telstra, Xero will announce a new strategic partnership with CGU, part of the IAG group which is Australia’s largest general insurer. CGU is working with Xero to simplify the task of calculating insurance premiums for Workers’ Compensation.

After being heralded by Forbes magazine earlier this year as the ‘World’s most innovative growth company’, the development team in Australia has grown to over 50, and is helping to increase the velocity of feature development for Xero globally.

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For more information contact:

Rod Drury Xero CEO rod.drury@xero.com +64 27 6000 007

Jo Miller Global Communications Manager jo.miller@xero.com +64 21 221 5171

About Xero

Xero is beautiful, easy to use online accounting software for small businesses and their advisors. The company has over 330,000 paying customers in more than 100 countries around the world. Xero is listed on the NZX and ASX.

See www.xero.com