Ann: Syntonic broadens license agreement with Tata Communications, page-29

Reply from IR regarding Verizon taking over hosting:

Thanks for your email and for your support.


To your queries:


1. Verizon has taken over much (but not all) of the hosting of the Syntonic CSP for its own services. As a point of reference to provide you with some broader colour, Tata entirely hosts their Sponsored Data Exchange (which is the white-labelled name for the Syntonic CSP).


2. As the margins for hosting are relatively low, operator hosting allows the Company to reassign internal resources to higher revenue/margin opportunities. It also prevents the Company from facing risk if the service was to go down even for reasons outside of its control.


3. Licensing revenue isn’t effected. Hosting revenue is accounted in the ‘services’ revenue which is nominally reduced as a result of Verizon hosting. As mentioned above, the financial benefits far outweigh this nominal reduction in services revenue.


Regards,


Syntonic IR