Ann: Completion of Phase 2 Delivery of Karaoke2U & Company Update-TV2.AX, page-2

DIVAN.TV COLLABORATION UPDATE TV2U has commenced content delivery through its collaboration agreement with Divan.TV, with TV2U content currently being marketed to Divan’s one million plus users across Russia and the Commonwealth Independent States (CIS). The collaboration agreement with Divan.TV enables TV2U content to be delivered into the region via a trusted and fully operational partner. As part of the next phase, Divan.TV and TV2U International continue to negotiate Hollywood content rights for Russia and Ukraine as the first launch countries for the service within the CIS region. Obtaining the most economically viable pricing for any new and underserviced country launches, is a company priority so as to ensure the financial model is sound and to maximize our potential subscription base in each region via an attractive costing and content package. TV2U is comfortable with the pricing guides it has received for delivery into Russia, one of our key markets for service delivery, however the Company is still finalizing the best pricing schedule for launch into Ukraine. The discussions are progressing well and the Company will update the market once these negotiations are completed. TOOMAI OTT AFRICA MANAGED SERVICES CONTRACT TV2U International is in constant contact with Toomai and awaits the first payment of $US500,000 in early October. Once received, the Company will update the market accordingly.