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News Item

Brighter message from U.S.

1st May 2007, Adelaide Advertiser
by Russell Emmerson

ADELAIDE company MGM Wireless yesterday went to the head of the class after finalising contracts with three Californian schools.

The company's "Messageyou" SMS product allows schools to notify parents when students are absent.

However, MGM Wireless will also receive significant financial incentives under its first U.S. contract, chief executive Mark Fortunatow said.

"Most of the American school system works on the basis that schools are funded on the number of students who actually attend each day, not on enrolments," he said.

"If Messageyou delivers the attendance uplift we have seen in Australian schools, some of the additional funding revenue uplift will flow to MGM Wireless as a share of the success."

Trials currently proceeding in three Arizona school districts were "in their final stages" and were expected to be finalised "over the next few months", he said.

MGM shares closed up 1c to 19c yesterday.