Ann: Appendix 4E and 2016 Annual Report-CVT.AX, page-6

Having a read through the annual report, I note a few key paragraphs from TT. The message is clear and consistent, it's only a matter of time...

- Covata was named in a successful UK law-enforcement and community services tender by a multi-national aero-space and defence corporation (Prime contractor). This is a multi-year contract with a total value to the Prime contractor in excess of $200M AUD. The Company continues to work with the Prime contractor to define contract details and will keep shareholders informed as developments arise

- Established a strong relationship with UK Government Foreign & Commonwealth Office Services (FCOS). The Group anticipates that this partnership, which will see Safe Share delivered to UK Gov departments over FCOS trusted infrastructure, will accelerate the conversion of the current government pipeline consisting of more than 250,000 potential end users.

- Since being accepted onto the highly coveted UK Government G-Cloud Marketplace, the UK Government sector is shaping up to be a key vertical with the current pipeline representing more than 250,000 potential end users. There are more than 5.3 million employees in the UK public sector alone and within the first eight months of being live on G Cloud, a number of major UK government departments are considering Safe Share as their preferred secure file sharing application. Covata’s security focus is unique and has the potential to be a major drawcard for this particular sector.

- As the Company has progressed deeper into sales cycles with enterprise and government prospects it has also found that contracts are likely to increasingly shift from a per-user per-month subscription basis to enterprise-wide/whole of department multi-year contracts for up to 10 years.

-  In 2015 Chunghwa heightened their focus on the delivery of ICT Services, including cloud, information security and IoT. Chunghwa have identified early stage pipeline targets and we are fully focused on building our position in the Asian cyber security market alongside Chunghwa over the coming year.

- Cisco and Covata are looking into a range of IoT and cloud projects for customers that are looking for, and value secure data sharing. Covata has been in customer meetings alongside Cisco with the Group focused on turning initial scoping into paid high value POCs. In parallel, Covata will drive broader adoption of the technology by opening up public APIs to the global developer community. The public APIs and developer portal will be made available over the first half of FY17.