fact or fiction, page-10

Cheers nahman and Director12.

Director12 - been in a similar situation twice before in my 20year investing history and yeah what doesn't kill us makes us stronger in the end.The only major pitfall is acting emotionally when one is down financially.
It still IS a fair whack of money to lose for me (or just about anyone I'd say).I still firmly believe that this possibility will NOT eventuate.We are on a winner here and I'm like all of us keenly awaiting clarification on the proposed sale of MobiData.I guess a lot will be made clear in close to 70 days although we must remember the SALE is not a foregone conclusion.

With this Sunday being the 18th and exactly one month since the latest announcement as regards to MobiData's sale I thought I'd post this;the original de-merger news announced to the market on October 24 last year.


Due to the change of events I have included IN PARENTHESIS the word "SALE" to be JUXTAPOSED alongside DEMERGER for our perusal during the weekend over a nice glass of wine,beer,single malt or whatever takes ones fancy.

*One must take note too that the now new potential sale might mean a return to shareholders of either equity and a special dividend or a mix of the two.

**Obviously current market capitalisation has changed too.
(Yeah don't we know it lol).

On reading the announcement it is no surprise many of us got hooked.
Keeping my fingers crossed this was no Odysseus and the Sirens of the Sea out of Greek mythology.

In closing I hope the market has been informed of any other ongoing developments with India and Radical Softnet since October of last year.



ASX Release October 24, 2007
Mobi Limited ACN 009 805 298 (ASX:MBI)
TERMS OF MOBIDATA GROUP PL DEMERGER (SALE) FROM MOBI
LTD (ASX:MBI)
Melbourne, Australia
• MOBIDATA GROUP PTY LTD to be demerged (SOLD) from Mobi Limited (ASX:MBI) February
2008
• Pre-demerger (SALE): MBI Market Cap $18.6m with underlying assets valued at $34.6m
• Demerger (SALE) will unlock $16m of value in underlying assets
• Shareholders to gain over 80% additional value based on current market capitalisation
Pursuant to the Company’s ASX release dated September 20, 2007, the Board of Directors
would like to take the opportunity to disclose further terms of the proposed demerger (SALE) of its
wholly owned subsidiary MOBIDATA GROUP PTY LTD.
In respects to the mechanics of the demerger (SALE), we are currently in discussions with our
legal, taxation and accounting counsel, whom will best establish the most efficient path
forward in conjunction with the approvals of all regulatory bodies including ASIC, the ATO
and the ASX.
Mobi Limited’s wholly owned subsidiary, MOBIDATA GROUP PTY LTD, has been
independently valued by BSI Capital at $16 million. Once MOBIDATA GROUP PTY LTD has
been separated (SOLD) from Mobi Limited and its shares distributed at no cost to Shareholders,
Mobi Limited will still have operating assets valued at circa $14 million, cash at bank of
approximately $4 million, recurring and growing monthly cash flows of approximately
$600,000, and will be EBIT positive after one off costs of restructure.
As a result of this demerger(SALE), Shareholders will still hold their existing shares in Mobi
Limited, plus, they will hold shares in a new entity, that trades on the Australian Stock
Exchange (subject to regulatory approval), and that owns MOBIDATA GROUP PTY LTD.
Shareholders do not have to outlay any funds to receive shares in the new entity.
Therefore, assuming the Company’s current capitalisation does not change from current
levels, if a shareholder held $10,000 worth of Mobi Limited shares at the time of the
demerger (SALE) (i.e. in ASX:MBI), this demerger (SALE) will give that shareholder a further circa $8,600
worth of shares in a newly demerged (SOLD) entity (i.e. the new proposed ASX listed company
that owns MOBIDATA GROUP PTY LTD) without any capital outlay. Assuming no change in
share price, the shareholder in this example would then own circa $18,600 worth of shares
for their original $10,000 holding. These ratios only apply to the current market
capitalisation of Mobi Limited, and will change proportionately if the capitalisation of Mobi
Limited changes. Nonetheless, the independent valuation of $16m for the MOBIDATA
GROUP PTY LTD will not be subject to this change.
The Board is also desirous of giving Mobi Limited shareholders and option holders a free
option to acquire further shares in the new entity. The terms of these options will be
subject to the regulatory advice that we are currently receiving, the details of which will be
publicised in due course as they are finalised.

The cost of this transaction to the shareholders is nil other than potential tax implications
that will vary upon individuals’ circumstances.
The Directors of Mobi Limited have decided to demerge (SELL) MOBIDATA GROUP PTY LTD due to
the market undervaluing the underlying asset of Mobi Limited being MOBIDATA GROUP PTY
LTD compared to the market demand and readiness of its products and services. This is
evidenced by the current market capitalisation of Mobi Limited of $18.6m, versus the
valuation of the underlying assets at $34.6m that reside within Mobi Limited.
This can be illustrated as follows:
MOBIDATA GROUP PTY LTD has rapid growth prospects due to:
• Global license and joint venture opportunities in the fastest growing global economies
including:
o India
o China and the rest of Asia
o North America
o UK
o Europe
• Within each country, there is the potential to establish multi-tiered channels being:
o Retail (Consumer) - sale of product portfolio
o Commercial (Businesses) - use of our Mobile Services Hub for staff, clients and
business partner communications
o Wholesale (Telco Sales) Mobile Services Hub offered as a value added service for
telecommunications companies
For the USA alone, we have grown to over 500,000 users over an 18 month period for one
of our products. Current downloads of this product are occurring at circa 40,000 a month.
The Directors of Mobi Limited have decided to demerge (SELL)MOBIDATA GROUP PTY LTD to
separate our mobile software business from our telephone carriage business. Moreover, the
Board wishes to leverage off the unique relationship we have developed with domestic and
global partners, most notably in India. This demerger (SALE) will realise the underlying value that
has been created in this subsidiary of Mobi Limited and deliver this value to shareholders.
The shares in the demerged (SOLD) entity, MOBIDATA GROUP PTY LTD, will be transferred for no
consideration to shareholders of Mobi Limited and separately listed on the ASX (subject to
regulatory approval). We are intent upon realising value and we have identified a path
through which this valuable asset can flourish. We anticipate this demerger (SALE) will occur
during the Month of February 2008. The record date for the demerger (SALE) will be advised in
due course.
Yours faithfully,
Fabio Pannuti
Chairman