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MOKO.MOBI LIMITED (MKB)

Having successfully established a global, scalable platform for mobile carriers, with a rapidly growing user base, the company is on the cusp of a take-off in revenues
DIRECTORS Greg McCann, Chairman Ian Rodwell, Managing Director Peter Yates, Non-Executive Director Hans de Back, Non-Executive Director Christine Kennedy, Non-Executive Director Stuart Simson, Non-Executive Director MARKET DATA ASX Code: Current Price: 52 week Share Price Range: Market Capitalisation: Enterprise Value: CAPITAL STRUCTURE
Shares on Issue: Listed and Unlisted Options:

KEY POINTS MOKO.mobi has developed and is commercialising an interactive, mobile, social networking platform that has the potential to generate significant new revenue streams for mobile phone carriers. More than 20 carriers worldwide and user numbers are growing rapidly from the current level of over 4 million, globally. Generates considerable incremental data usage, especially for premium products such as MMS and video sharing and is open to third party content providers. MOKO.mobi forums, chat rooms and interactive capabilities open to all users in contrast to Facebook and similar sites where contact is limited to friends. Mobile market much larger than the internet via a PC, especially in developing countries. Revenue is primarily generated by data usage fees and / or subscription fees and is shared between the carrier and MKB. Very attractive business model for mobile carriers in contrast to web based sites such as Facebook. Revenue growth should follow as carriers integrate the platform. With a low, and largely fixed cost base, revenue improvements should result in an improvement in the companys cash burn during 2010-11. With carrier support for the platform, the company is capable of building a large global user base over the next few years with the potential to generate sizable, high margin revenues.

MKB $0.10 $0.05 - $0.20 $11.9 million $9.2 million 118.6 million 39.1 million Interim 2010 186 (1,645) (1,283)
2,795 1 2,534 2,652

FINANCIAL SUMMARY $000 200809 (A) Operating Revenue 555 EBITDA (2,788) Net Profit / (Loss) (2,487)
Total Assets Intangibles Shareholder Equity Net Cash 1,349 2 917 1,177

MAJOR SHAREHOLDERS P & S Yates Holdings Ltd (and its controlled entities) Osiris Capital Loop Creative Limited SENIOR ANALYST Michael Gordon 03 9607 1371 April 2010
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13.86% 6.21% 4.57%

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INVESTMENT PROPOSITION
MOKO.mobi is a global company operating in a high growth market and has achieved initial success in executing its business model through licensing to 20 mobile carriers around the world. After several years of platform and business development, revenue growth should follow over the next few years as mobile carriers integrate the platform and as user numbers climb. Subject to the speed with which carrier integration and subsequent revenue growth occurs, it is possible that the company will achieve a profit breakthrough during 2010-11. Investment in MOKO.mobi is speculative although progress in licensing to more carriers, sustained (high) growth in registered users and a take-off in revenues pointing towards a profit breakthrough would drive a re-rating of the stock.

Open Portal (US), Telefonica and Yoigo (Spain), Claro (Brazil), Reliance Communications, Idea Cellular and Airtel (India), Du Mobile (United Arab Emirates), Maxis (Malaysia) and Smart Mobile and Globe Telecom (Philip pines). There are currently 4 million subscribers globally.

RECENT ANNOUNCEMENTS
25 February 2010 Half Yearly Report and Accounts The financial results for the six months ended 31 December 2009 saw a 38% decrease in Sales Revenue to $186,504 over the corresponding prior period primarily as a result of discontinuing ad hoc white label services and delays in bringing new carriers on-line. 4 March 2010 Signs Contract with Orange (France Telecom) in UK MOKO.mobi has signed an agreement with Orange, one of the UKs premier mobile networks. MOKO.mobi will be launched with zero rated data, MMS and premium activity billing and featured on the Orange content portal. MOKO.mobi will manage all the billing and MMS functionality. Technical and product integration is scheduled to begin immediately, with an anticipated launch date in late April 2010 and revenue is expected to flow in the ensuing two to three months. Orange is one of the worlds largest mobile groups with over 130 million customers throughout 32 countries. This contract also means MOKO will have a significant presence in the UK mobile content market, which is an important stepping stone into the mainland European market. 8 March 2010 Carrier Launch Update - Verizon and Telefonica MOKO.mobi has completed integration on Movistar (Telefonica) in Spain and Verizon USA, and the services are now live in the soft launch phase, meaning that marketing and promotions to support the launch will now be commenced during the next quarter. The Company anticipates revenues to increase from these two carriers as a result of the promotional activities over the coming 6 months.

BUSINESS OVERVIEW
MOKO.mobi is a platform for mobile phone carriers that enable users to chat and share in an open environment. Users can meet new people, chat in real-time with likeminded people, upload unlimited photos and video, share links, and sample and recommend music from the many MOKO.mobi Music artists. MOKO.mobi is a social networking platform with a number of differentiating characteristics that makes it attractive to mobile carriers. The most important is that the platform generates considerable measurable incremental revenues through higher data usage fees and / or subscription charges, especially through premium products such as MMS and video sharing. MOKO.mobi shares these revenues with the respective carriers. The company has licensing agreements with mobile carriers throughout the world including Optus and Telstra (Australia), Verizon, AT&T and Maxx Wireless Alltel

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15 March 2010 Partnership with PT Innotech Wireless Solutions MOKO.mobi has signed an agreement with PT Innotech Wireless Solutions (Innotech), a leading mobile specialist service provider to all the major Indonesian mobile carriers. Innotech has been appointed as the exclusive agent for MOKO.mobi in Indonesia and will be responsible cocoordinating the launch of the service on the carriers portals with zero rated-data, premium MMS, and WAP billing. Indonesia is a large mobile market with over 180 million mobile customers. This contract means MOKO will significantly increase its presence in the South East Asian market, building on the exiting launches in Malaysia and Philippines.

internet. In recent years, Facebook, My Space and Linkedin, amongst others, have taken social networking to a new level. However, all these avenues have been developed and thrived in the personal computer (PC) environment. The emergence of smartphones, such as the iPhone, has created a new and potentially much larger online world, especially in developing countries where users of mobile phones greatly outnumber those with Internet access (there is typically more than 2 or 3 times as many mobile users than PC internet users in developing countries and even in developed countries there are usually considerably more mobile users). The mobile world is a vastly different commercial environment compared with the PC environment, not the least due to the controlled access to the networks by the mobile carriers. In contrast, the PC world provides open and free access to the Internet. As a consequence, the commercial opportunities in the mobile environment are much greater and certainly broader than merely attracting advertising revenues. More specifically, the carriers act as gateways and revenue can be charged through data fees, subscription fees or a combination thereof as well as from advertising. Having spent the past few years developing the platform and convincing mobile carriers of the value proposition, the company is now transitioning as these carriers integrate the services and promote to their own customer bases. The focus will soon shift to brand building and revenue development. MOKO.mobis business model is based on the userpays principal through sharing with the carriers revenues that are generated through charges and fees. The challenge is to maximise ARPU (average revenue per user) and this will be achieved through premium services, interactive marketing, add-on services and from providing access to third-party content providers which both enhance the user experience and increase frequency of use. Based on current usage patterns and pricing structures in the respective markets, we estimate that average ARPU will vary from less than 50 cents per month in developing

LATEST PROFIT RESULT AND SHORT TERM EARNINGS OUTLOOK

Revenue for the six months ended 31 December 2009 of $186K was 37.8% below the same period in 2008 whilst the net loss for the period was 4% higher at $1.3 million. The lower revenue was primarily attributable to the conclusion and non-renewal of a previous exclusive relationship in the UK (which has subsequently opened up other longer term opportunities) and delays in bringing new carriers on-line. The cash burn rate and operating losses have remained high as the company has completed development of its platform and aggressively marketed to carriers throughout the world. With 20 carriers around the world now using the MOKO.mobi platform and with subscriber numbers now exceeding 4 million, revenues are expected to build rapidly, off a low base, over the next few years. Cash burn is expected to decline as revenue builds. Experience points to a very rapid user take-up following a carrier launch, however, revenue flows and the time frame to profitability remains dependent on the speed with which newly signed carriers integrate the platform, which can take up to 6 months.

BUSINESS DRIVERS AND GROWTH PROFILE

MOKO.mobi is part the social networking phenomenon that has swept the online world in recent years. But it is leveraging this phenomenon into the mobile world. Forums, user groups and chat rooms have been important avenues of social interaction since the earliest days of the

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countries such as India and the Philippines to over a couple of dollars per month in advanced countries. Social networking in the mobile environment has largely been confined to text messaging (apart from voice), however, this world is being transformed by so-called smartphones, led by Apple and its groundbreaking iPhone but now also including Googles Android platform, Windows Mobile and the Blackberry. These smartphones provide enormous consumer functionality through a vast array of third-party applications. Applications are becoming increasingly sophisticated and in many respects the smartphone is replacing the PC as the tool of choice for communicating and interacting with the rest of the world. Facebook and other social networking sites are typically based on communicating with a specific user or users (friends). The MOKO.mobi platform, in contrast, is an open environment where anyone can join a conversation or forum which will have users interacting real-time across the world. Although the US, UK and similar developed markets will remain high value audiences, major traction is perhaps going to come in emerging markets, where the consumers first entry into the Internet is through their mobile phone. For them, a localised and globally connected chat community is more relevant than PC based brands. There are currently in excess of 4 million registered MOKO.mobi users worldwide. The key demographic is young male although 40% of the user base is aged over 30. Males are 61% of the user base, however, females generate 65% of premium activity. Mobile is the tool of choice for connection to the web with the PC being secondary. Typically users are from a middle socio-economic background. Users typically access the platform in cycles moving from periods of high activity followed by a slowdown before they again engage at a high level. Site usage averages 23 minutes per session and in a typical month users will upload 3.2 MMS (pictures), view 640 pages and send 3.6 private messages. This represents significant and very profitable activity for a carrier. The number of registered users is expected to expand rapidly over the next year as recently added carriers are integrated and more carriers take on the platform. It is conceivable that the user base will exceed 20 million within a few years.

FINANCIAL SUMMARY
($000) Trading Revenue EBITDA Depreciation Finance Cost PRE TAX PROFIT/(LOSS) Tax Benefit NET PROFIT / (LOSS) INCOME STATEMENT Interim 2009 300 (1,545) (10) (1,555) 322 (1,233) Interim 2010 186 (1,645) (5) (1,650) 367 (1,283)

($000) Current Assets Cash & Equivalents Receivables Other

BALANCE SHEET 30 June 2009 1,177 123 35 1,335

31 Dec 2009 2,652 112 24 2,788

Non Current Assets Investments & Other Financial Assets Plant & Equipment Intangibles Other Total Assets Current Liabilities Payables Debt Other Non Current Liabilities Debt Provisions Other Shareholders Equity Liabilities & Equity

12 2 14 1,349 319 113 432

7 1 8 2,796 127 135 262

0 917 1,349

0 2,534 2,796

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CASH FLOW ($000) Net Cash Flow From Operations Net Cash Flow From Investing Net cash Flow From Financing Net Change In Cash Interim 2009 (1,351) (7) 943 (415) Interim 2010 (1,049) 2,524 1,475

Chief Executive Officer of Publishing and Broadcasting Limited from 2001-2004. Until 2001 he worked in the Investment Banking industry including 15 years with Macquarie Bank. Peter has also worked for Morgan Stanley in Australia and Booz Allen Hamilton in Tokyo Hans de Back - Non-Executive Director Hans is the CEO and co-founder of the Triscreen Media Group, managing a number of companies providing interactive media solutions. Hans previously worked as a lawyer for several international firms, specialising in mergers & acquisitions with a focus on telecom, media & entertainment. In 1999, he co-founded Telitas Benelux, one of the first and most successful mobile content providers in Europe. In 2002, Telitas was sold to Index for 50m, and Hans went on to develop the Triscreen Media Group which has grown to 6 offices worldwide with activity in over 35 countries. Stuart Simson, Non Executive Director Stuart has 38 years experience in the Australian media industry. From 2002 to 2006 he was Executive Chairman and Chairman of emitch Limited the largest on-line advertising agency in Australia and New Zealand. He has a portfolio of new media interests. Stuart is a former Managing Director of The Age and Sunday Age, and Editor and CEO of BRW Publications. He is also a former Managing Director and part owner of National Business Review NZ and has owned and operated regional radio stations. Stuart served as Associate Commissioner on the Productivity Commission Inquiry into the Broadcasting Services Act. He is a member of the CSIROs ICT business advisory council and a Council member of Leadership Victoria. Christine Kennedy, Non Executive Director Christine holds a Bachelor of Business (Accountancy) degree and a Bachelor of Laws degree from Queensland University of Technology and is admitted as a solicitor to the Supreme Court of Queensland. Since 2004 Christine has been based in London and Singapore as Director and Legal Counsel for a significant, privately-held group of companies.

DIRECTORS & SENIOR MANAGEMENT

Gregory McCann, Non Executive Chairman Greg is currently the Managing Director and principal of the Excentor Group of companies, an independent software and consulting services supplier to the Asia Pacific region with 25 years of experience. He was previously a partner with Deloitte for 24 years and has held a number of senior leadership roles, including Managing Director for Deloitte Consulting/ICS in Australia, a systems integrator specialising in the implementation of enterprise applications. Greg is also Chairman of Tel.Pacific, and on the Board of the law firm, Landers and Rogers. Ian Rodwell, Managing Director & CEO Ian is the founder of MOKO.mobi Limited. He has over 20 years experience in corporate and consumer design and multimedia and has owned and operated several businesses specialising in this field. He has worked in Australia, Singapore, UK and the US, managing projects for many international companies including McKinsey, BMW, UniLever, and MTV. In the consumer area, Ian led projects for several of the worlds biggest names in sport including Manchester United FC; The All Blacks; Adidas; and several top tennis stars such as Anna Kournikova and Lleyton Hewitt. Peter Yates, Non-Executive Director Peter Yates is Chairman of the Peony Capital General Partnership and a director of and Oceania Capital Partners Limited. From 2004-2007 Peter was Managing Director of Oceania Capital Partners (formerly Allco Equity Partners Limited), a listed private equity fund specialising in private equity and activist corporate situations. Peter was

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DISCLOSURE AND DISCLAIMER: The information contained in this Report is of general nature and is for information purposes only,
and has been prepared by Gordon Capital Pty Ltd in good faith and with due care but no representation or warranty, express or implied, is provided in relation to the accuracy or completeness of the information. The information in this Report does not constitute financial product advice (nor investment, tax, accounting or legal advice) and has been prepared without taking account of any person's investment objectives, financial situation or particular needs. You should read any relevant materials lodged with ASX and consider all of the risk factors that could affect the performance of MOKO.mobi Ltd in light of your particular investment objectives, financial circumstances and investment needs (including financial and taxation issues) and seek professional advice from your accountant, financial adviser, stock broker, lawyer or other professional adviser before deciding whether to invest in of MOKO.mobi Ltd. This Report does not purport to contain all the information that a prospective investor may require in evaluating a possible investment in of MOKO.mobi Ltd nor does it contain all the information which would be required in a product disclosure statement or prospectus prepared in accordance with the requirements of the Corporations Act. Prospective investors should conduct their own independent investigation and assessment of the information contained in, or referred to in, this Report. Statements in this Report are made only as of the date of this Report unless otherwise stated and the information in this Report remains subject to change without notice. MOKO.mobi Ltd, Gordon Capital Pty Ltd, and AusGlobal Securities Pty Ltd are not responsible for updating this document. The historical information in this Report is, or is based upon information that has been released to the market. For further information, please see past announcements released to the ASX. This Report contains certain forward-looking statements. The words anticipate, believe, expect, project, forecast, estimate, likely, intend, should, could, may, target, plan and other similar expressions are intended to identify forward-looking statements. Indications of, and guidance on, future earnings and financial position and performance are also forward-looking statements. Any forecasts or other forward looking statements contained in this Report are subject to known and unknown risks and uncertainties and may involve significant elements of subjective judgement and assumptions as to future events which may or may not be correct. While due care and attention have been used in the preparation of forecast information, such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of MOKO.mobi Ltd, that may cause actual results to differ materially from those expressed or implied in such statements. There can be no assurance that actual outcomes will not differ materially from these statements. Any forecast or other forward looking statement contained in this Report is subject to known and unknown risks and uncertainties and may involve significant elements of subjective judgement and assumptions as to future events which may or may not be correct. There are usually differences between forecast and actual results because events and actual circumstances frequently do not occur as forecast and these differences may be material. You are cautioned not to place undue reliance on forward looking statements. The views and opinions expressed in this report are solely those of the writer. This Report does not and will not form any part of any contract for the acquisition of Securities in MOKO.mobi Ltd. None of Gordon Capital Pty Ltd and AusGlobal Securities Pty Ltd, or their affiliates, related bodies corporate or the officers, employees, partners, directors or advisers of any of them (together, the Report Writers) guarantee or make any representation or warranty as to, or take responsibility for, the accuracy, reliability or completeness of the information contained in this Report. Nothing contained in this Report is, or shall be relied upon as, a promise, representation, warranty or guarantee, whether as to the past, the present or the future. To the maximum extent permitted by law, the Report Writers disclaim all liability that may otherwise arise due to any information contained in this Report being inaccurate or due to information being omitted from this document, whether by way of negligence or otherwise. The recipient agrees, to the fullest extent permitted by the law, that they shall not seek to sue or to hold the Report Writers liable in any respect in connection with this Report. Gordon Capital Pty Ltd was engaged by of MOKO.mobi Ltd (COMPANY) to provide research coverage services to the COMPANY. In relation to the report we highlight that Gordon Capital Pty Ltd will receive a fee for providing those services including the preparation of this Report. Save for this fee Gordon Capital Pty Ltd and its associates have no relevant interest in any shares or other securities of the COMPANY and do not expect to receive any other direct or indirect pecuniary advantage or interest in connection with this Report or that may be reasonably capable of influencing the preparation of this Report. Each paragraph of this disclaimer shall be deemed to be separate and severable from each other. If any paragraph is found to be illegal, prohibited or unenforceable, then this shall not invalidate any other paragraphs. The author of this report, Gordon Capital Pty Ltd, is an Authorised Representative of AusGlobal Securities Pty Ltd, the holder of AFS Licence number 287627. ACCEPTANCE By accepting, accessing or reviewing this document you acknowledge and agree to the above.

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