Emailed Joe WARD of xTV regarding some questions as both an...

Emailed Joe WARD of xTV regarding some questions as both an Applabs and IZM shareholder and received the following responses (in bold).

Obviously he gave only as much information as he was able with regards to the companies current position but the points to take from it are:

A professional, prompt response to a shareholder, a willingness from management to respond to concerns and this in turn gives an idea of the type of personalities / businesses, their calibre and specifically their attitudes to shareholders that Applabs/Intercept are engaging with as well, this reflects well for both companies going forward.

Happy to have shares in both ALA and IZM and am very pleased with managements positive conduct and attitudes towards their shareholders.

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Hi ......,

thanks for your message.

Overall, i just want to say that we're excited about our move forward with IZM in partnership with Applabs - who are on site with us almost daily here in Redwood Shores, CA.

See my responses to your questions below:

Hi Joe, I have recently purchased some shares in IZM due to their new involvement with xTV, I had become aware of them as I am a current shareholder in Applabs and I am very interested in new or disruptive technologies and like the concept of what xTV could bring to the market as it grows.

I have some questions, if you are able to answer some if not all it would be appreciated.

1. I have seen XTV, .TV and similar domain addresses, there is also another company, Minerva which seems to be aiming to bring the same sort of benefits, and so with regards to the aforementioned what differentiates xTV from other companies, branding wise and what has xTV got going for it that will enable it to maintain competitive market advantage or stop others from simply copying the concept?

Our realtime technologies, patents and culture. The fast nature of the deployment platform. These are our focus points.

2. The current concept of a US based media company being acquired via a resource shell (IZM) with assistance from Applabs on the Australian stock exchange is different, why has this eventuated and funding not simply have been sought via Archimedes or a US partner as you are based in a Silicon Valley. This sounds warning bells, is it because they (Archimedes / others) want to spread their risk, xTV wasn't a good enough value proposition for them straight up or because xTV is high risk and couldn't get funding elsewhere. If it was such a good deal it confuses me why it hasn't been snapped up 100% by Microsoft or some VC firm already, it just seems strange the way the company has gone about it, could you please clarify?

We haven't made the waves we intend to just yet. We will get their attention, i'm convinced of it. We'll be public by then and have the ability to make choices. We are a very unique business with a grand vision and focus on immediate revenues. I'm personally not a fan of highly capital intense businesses and believe that xTV being listed on the ASX, with deal news being driven from the U.S. is very attractive. VC's business models are designed to dilute the angel investors and founders in typical scenarios, this path is attractive to us. Also, i'm an Australian and have lots of experience on both sides, so its clearly an attractive path.

3. There is talk that xTV will list on the ASX later this year via IZM, what are your thoughts with regards to this as/if xTV grows as an Australian entity, how will this impact on it's US/International operations, wouldn't it make more sense to keep it a US based company?

My go-to-market and product management team will still remain in the U.S.

4. Do you believe it is better to buy IZM shares now or wait until there is a listing with the requisite new funding, possible dilution for current shareholders, basically are there going to be any protocols in place to enable current IZM shareholders the ability to keep insulated from new share offering or persons such as myself purchasing due to xTV's new involvement, reward options to existing shareholders etc, basically this is going to be a big change for IZM shareholders and potential new ones, what is the plan to manage this new company and ensure current shareholders aren't adversely affected?

You really have to make your own calculations based on the share price at the time. I'm not sure i should make recommendations. However, i think remaining in communication with the Applabs guys and their brokers and seeking access to some stock at listing would make sense.

5. xTV has been around a few years, obviously has some support from Microsoft (Although from their own admission they have their fingers in a lot of pies) and others so what is the current takeup/growth trajectory at present for market share, potential customers and revenue, will an ASX listing turbocharge the process or do you think this will be a long process with income growing over a long period of time.

Our business & platform gets better every month with new innovations.

Microsoft has been a great supporter however needs work to turn it into significant reality. The marketplace opportunity is enormous and the focus point is a mix of monthly subscription revenues to sustain our cash with 5+ larger scale "blue sky" deals in the pipeline. The business focus is on breaking even, with highly scalable revenues through the right online TV product mix. The ASX listing will give us more sales people and engineers when we have proven our sales cycle. Once this is proven, i intend to invest heavily in growth.

6. Lastly although I am very excited about what the company offers I am asking critical questions so that you can perhaps clear up some matters as the website and Microsoft clip on xTV, although polished says very little, seems a lot if "fluff" and does not set out a detailed roadmap of what your company's intentions are, how you intend to get there, steps to take and timelines, projected income streams etc. As an investor these are things that need to start being pushed out to the market ahead of any listing.

Yes i agree. We only received our $2M investment a few months ago and intend on addressing these types of issues to become a world-class business, which lowers the barriers to entry to build online TV and multiplies the consumption as a result. Its a great opportunity, one we will manage with no hesitation in taking on large scale deals as they come about.

Hopefully you will not find my questions too painful, I think the idea/platform is good and have recently purchased some IZM shares to back my faith in the concept and potential, whether I purchase more is dependent on what further information is available. Looking forward to your response.

Also best wishes for the future with xTV.

Thanks very much ......... - very reasonable questions. I hope we can drive significant upside for you should you continue along with the journey.