nz contract

MXL wins New Zealand contract
The New Zealand Education Minister, the Hon. Trevor Mallard, today announced
the release of an $NZ8 million funding package to help schools upgrade their student
management systems. As part of the program, MXL has been selected as preferred
supplier to supply its eMinerva and SchoolMate.net solutions to an estimated 500
schools currently without a student management system. The program, eSMS, calls
for a hosted web based student management system to be available to these schools
across a wide geographic distribution. Some 2000 schools in New Zealand can also
choose to move to the eSMS solution or one of the other accredited solutions and be
eligible for funding.
The eSMS project will commence almost immediately with a pilot group before
rollout proper begins in late 2005. It is expected the rollout will be complete by the
end 2008. MXL is expecting to generate $NZ 1-3 million in upfront revenues over the
period with ongoing annual revenues of approximately $NZ 1 million. Revenue
under this initiative nevertheless represents only a part of that budgeted for New
Zealand over the current financial year.
In addition to the eSMS project MXL is in the process of establishing reference sites
with larger schools (student population > 750). The first of these, Murrays Bay
Intermediate School with approximately 900 students is already underway with
several others to be installed by September 2005. Naturally the larger schools
represent a substantive increase in revenue potential. MXL is currently in discussions
with approximately 70 of this category of school.
This rollout highlights two significant points:
1. This is the first of several large tenders which MXL is competing for that has
been decided. A number of far larger contracts are expected to be decided
over the coming weeks and months.
2. It is by far the largest initiative MXL has won to date.

Other Activities
MXL remains engaged in the tender process for two state government projects in
Australia. Discussions of a preliminary nature have also taken place with two other
states, one of which has been referred by one of the two state governments where we
are already engaged in a tender situation.
The previously mentioned Brunei school system tender has closed and MXL is
involved as a consortium member lead by a derivative of one of the largest global
service groups.
Developments are awaited