ASX Announcement

PERTH APRIL 18, 2019

FAMILY ZONE RAISES $5.5M VIA SHARE PLACEMENT TO DRIVE SCALE

HIGHLIGHTS

Family Zone raises $5.5 million (before costs) in a placement to institutional and sophisticated investors at $0.155 per share

Funds raised to support investment in business development, engineering, inventory and working capital to underpin sustained growth in active users and revenue towards anticipated cashflow breakeven in the first half of calendar 2020

Investors include prominent existing and new Australian and Asian-based fund managers and sophisticated investors

Family Zone Cyber Safety Ltd (ASX: FZO, ‘Family Zone’ or ‘the Company’) is pleased to advise that the Company has received binding commitments to raise $5.5 million (before costs) through a placement of 35,483,872 new shares at $0.155 per share.

The Company continues to receive support from a number of existing institutional investors and welcomes a range of new institutional and sophisticated investors from Australia, Asia and the USA.

Net proceeds of the capital raising will be used to accelerate growth, to build on the rapid progress being made in USA education and to underpin the Company’s commitment to achieving cashflow break even early in CY 2020.

Blue Ocean Equities acted as Lead Manager to the share placement.

The Company will issue the placement shares under its ASX Listing Rule 7.1 and 7.1A capacity with 23,651,594 Shares to be issued under Listing Rule 7.1 and 11,832,278 Shares issued under Listing Rule 7.1A capacity .

The issue price of $0.155 per share represents a 22.5% discount to the last traded price and a 23.6% discount to the 15-day volume-weighted average price.

Family Zone Managing Director, Tim Levy, said:

Thiscapital raising is an important step towards ensuring Family Zone is in a solid position to pursue the immense opportunities in front of us. With this raising we strengthen our balance sheet and have funds to pursue growth in the exciting USA market. Through this raising we also welcome Blue Ocean Equities and a number of new institutional investors. Through these measures we hope to unlock value and liquidity for our shareholders.”

“I look forward to updating the market through our quarterly update in the coming weeks on the exciting progress we’re making. Key milestones include rapid school update in the USA (now over 270 schools), remarkable parent uptake in Australian schools (at around 45%) and continued doubling of our recurring income. We are projecting top line revenues at the high end of $8 million to $9 million in FY19 and the Company moving swiftly to cashflow break even in the first half of CY2020.

“May I finally acknowledge the patience and commitment of our investors who have and continue to support our truly unique platform. Family Zone is now evidently proven and is set for a step change in its development as our services evolve and our focus expands from Australia and New Zealand to encompass the large US market.”

About Family Zone

Family Zone is an ASX-listed technology company focused on cyber safety. Meeting a growing demand to keep kids safe online and manage digital lifestyles, Family Zone has developed a unique and innovative cloud-based solution which combines Australian innovation with leading global technology.

To learn more about the Family Zone platform and the Company please visit www.familyzone.com.

For more information, please contact: