National rollout of KNeoJUNIOR in China  National distribution...

National rollout of KNeoJUNIOR in China  National distribution of KNeoJUNIOR commences in China after successful trial in Guangdong  Distribution through agreement with SmartTrans and their Direct Carrier Biller China Mobile  Roll-out now occurring in Guangdong and Sichuan Provinces  Other edutainment products being considered for rollout in China  Progress in Australia and United States encouraging Online education publisher KNeoMedia Limited (“KNeoMedia” or the “Company”) (ASX: KNM) is pleased to provide shareholders with an update on the rollout of its KNeoJUNIOR edutainment (education & entertainment) product in China through its partnership with ASX-listed SmartTrans Holdings Limited (ASX: SMA) (“SmartTrans”). In July of this year the Company announced the first Mandarin language consumer trial of KNeoJUNIOR in Guangdong Province which resulted in 14,000 individual consumer downloads occurring. After assessing pricing options and consumer feedback since July, KNeoMedia is pleased to report that SmartTrans has now commenced national distribution of the Mandarin version of KNeoJUNIOR in China via the Direct Carrier Billing platform of China Mobile, one of the country’s largest telecommunications providers. The product has initially been rolled out to China Mobile subscribers in Guangdong Provinces with a total of 5 Provinces under consideration. Accordingly, the Company is expecting to achieve high download rates as distribution progressively expands into targeted major Provinces in China. This is a very pleasing milestone for KNeoMedia as it validates the consumer appeal of product as well as SmartTrans’ and China Mobile’s commitment to KNeoJUNIOR’s rollout. KNeoMedia’s Chief Executive Officer, James Kellett commented: “This is a very pleasing development for KNeoMedia and we believe it is the first of a number of edutainment products we plan to rollout to consumers in China. Through SmartTrans’ partnership with China Mobile and the huge potential audience this gives us, I am confident that this product will become a key revenue driver for the Company in China.” “I look forward to updating shareholders on the progress of the KNeoJUNIOR rollout, along with our activities in Australia and the United States which are progressing to plan.”