The Company’s cash receipts from customers increased by 16%...

The Company’s cash receipts from customers increased by 16% (being $184,897) in this quarter compared to the
previous (the ASX announcement of 30 Apr 08 refers). When compared to the same period of the previous financial
year, the Company’s cash receipts from customers increased by 10% (the ASX announcement of 31 Jul 07 refers).
As at 30 Jun 08, the Company’s cash position stood at $140,063 and trade debtors totalled $52,130. As at the date of
this report, the Company is in the process of completing a placement to sophisticated and private investors to raise
capital and expects to announce the details early next week.
As the market knows, the Company’s wholly owned subsidiary Data-inCrypt
® formed a strategic alliance earlier this
year with CertifiedMail.com, Inc (“CertifiedMail”), one of the world’s leading secure email providers (the ASX
announcement of 31 Jan 08 refers). The basis of the strategic alliance between Data-inCrypt
® and CertifiedMail is a
ten-year teaming agreement providing Data-inCrypt
® with the exclusive licensing rights to offer a hosted CertifiedMail
service - to be branded “Data-inCrypt
® SMX secure registered email” and to sell CertifiedMail software licenses for
in-house enterprise use in the Far East / Asia Pacific region.
Moving into the third month (April 08) post-launch, Data-inCrypt
® continued to focus its efforts on the deployment of
SMX into Australian organisations for evaluation and the refinement of its marketing strategies, particularly with regard
to the targeting of high-end customer and partner opportunities, being corporate and Government organisations with an
inherent need for high security communications within their operations. These strategy refinements resulted in the
appointment of the Company’s Director Mr Martin Eade to the position of Chief Technical Officer (the ASX
announcement of 18 Apr 08 refers) and preparations for an SMX National Road Show in July 08 to potential customers
and strategic partners, including e-law Australia Pty Ltd (workshop and discovery session), KPMG (discovery session),
NEC Australia Pty Ltd (workshop and discovery session), the Melbourne Cricket Club (presentation) and the
Department of Justice (Victoria) (presentation) (the ASX announcements of 07 & 15 July 2008 refer).

To date, SMX has been deployed into more than 70 Australian organisations for evaluation, representing over 350 gold
users. In addition to these and the abovementioned organisations, Data-inCrypt
® remains in discussions with a variety
of potential customers and strategic alliance partners including: