BUD 0.00% 0.6¢ buddy technologies ltd

Ann: Response to ASX Aware Letter, page-30

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    Page 7 was also of interest for mine particularly the pricing outlined at point b. Expect that many have upgraded from the base $1500 with additional links which can only be a positive

    The Company considers that it adopted a prudent approach in setting the minimum sales commitment (such amount being significantly less than Digicel's projections). The 1,000 Buddy Ohm product units equates to a revenue sum of A$20.9 million (being the A$20.9M Digicel Revenue Amount defined in the Aware Letter). This revenue sum was determined following an analysis by the Company's sales and marketing and executive management team of the proposed three year roll-out schedule for the Buddy Ohm product (devised with Digicel) and applying a formula that accounts for, amongst other things:

    a. the median yearly expected sales; and

    b. the monthly fees payable (varying between US$1,500 and US$2,513 per month per system) in respect to each Buddy Ohm “base pack” (the smallest package of Buddy Ohm product offered in that market) product sale.
 
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Currently unlisted public company.

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