ASX Announcement

MGM Wireless deploys messageyou™ in the US

23 June 2006
Adelaide-based MGM Wireless Ltd (ASX Code: MWR) today announces that it has reached
agreement to place A$372,000 in fresh capital in order to fast track the deployment of its market leading messageyou school attendance text messaging service in the US.

MGM Wireless reached agreement earlier this year to trial messageyou in three schools in a midwest American town about the same size as Adelaide. "The schools were implemented in the last weeks of the US school year, the school communities were alerted to the new service and text message trialling took place," said MGM Wireless executive chairman, Mr Mark Fortunatow.

"The groundwork is now in place for these schools to be up and running for the start of the new
school year, which begins on July 24th, 2006," Mr Fortunatow said. "However, school enrolments
start in the next fortnight and we want to be as ready as we can be for these important first few
months."

"In three years, we have captured just under 10% of the Australian secondary school market and have more than 90% penetration of messageyou in two entire regions of Australia. Obviously, the

US is an enormous market, but if we can have even half that rate of success among the 55,000 or so US secondary school and colleges, we will be more than delighted."

More than 200 Australian secondary schools now use messageyou. Australian schools are also
starting to implement MGM's other attendance monitoring system, messageyouWatchlists™.
"The MGM Wireless text messaging and attendance monitoring systems are finding an eager
market in Australia, driven by the effectiveness of communicating with parents and guardians via mobile phone texts.

The number of text messages that schools are sending has been growing at around 30% a month this year as school communities discover the effectiveness of getting vital attendance and other school information across to parents via unobtrusive messages on their mobile phones."

"Mobile phone penetration into the Australian population is now more than 90%. You are seven
times more likely to be able to contact someone on their mobile than using a traditional land line.

"The situation is not all that different in the US where more than 9.8 billion messages were sent in December 2005, up from 2.1 billion in the same month in 2003. And we intend over the first half of the coming US school year, to demonstrate that messageyou can have the same impact on cutting truancy levels in American schools, as it has done so effectively in Australian schools which deploy our system. The MGM Wireless track record speaks for itself."

 

 

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