Quarterly activities report highlights increased

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30th October 2015

QUARTERLY ACTIVITIES REPORT For the period ending 30 September 2015

HIGHLIGHTS

? Increased customer opportunities through our four key focus areas

? Launch of premium channel offering

? Accelerated customer signup through the launch of the Cloud TV platform

? Enhanced Intel Partnership through digital signage offering

? Telecommunications partnership with giant USA Telco AT&T

The Board of xTV Networks Limited ("XTV" the "Company") (ASX:XTV) is pleased to provide shareholders with an update on the Quarterly Activities for the period ending 30 September 2015.

xTV Networks Limited has ended the September Quarter with substantial shareholder value unfolding on both the customer contract outlook and the product platform.

The xTV Networks opportunity has expanded substantially with new opportunities coming in daily in Health Care, Retail, Hospitality and more.

Customer Revenue and Early Stage Up--Take of the new Cloud TV Platform is accelerating.

Typical customer agreements being closed and quoted range from $199/month for small deployments, to $25,000/year for medium sized deployments. Larger deployments are commencing at $100,000/year with the overall individual accounts having the potential of $100,000 per month, per customer.

Status of New Customers, Sectors and Trials

The company is experiencing a large amount of new opportunities in multiple sectors as the video market continues to expand exponentially with xTV being at the forefront ? providing a Cloud TV service to organise video into networks, sub networks and channels.

xTV Networks Ltd

ACN 16 124 251 396

Suite 5, Level 1 12--20 Railway Road, Subiaco WA 6008



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As new clients are signed they will be announced in groups periodically, and major clients will be announced individually.

The majority of the clients the company is seeing opportunities with are in Health Care, Hospitality, Retail with Conference TV showing early signs of being successful with $25,000 per annum being a typical revenue size for a Conference TV pack.

All current paying clients are based in North America ? where the revenue potential and brand name accounts are very large.

Discussions with Pacific Magazines have not been pursued aggressively as xTV has interest from some larger partners in the space which have shown interest in becoming partners in the Australian market. In addition, the company continues to see interest from three telecommunications companies, in Australia, New Zealand and Hong Kong.

Premium Channel Offering

Specifically in Health Care, xTV has been signing up content companies to accelerate the customer adoption process and value proposition. Currently the company is quoting networks in Health Care which now include Premium Channels in the following categories:

? Coronary Artery Bypass Graph, Heart Bypass surgery patient course, Stent, Heart Stent procedure patient course, Total Knee Replacement, Total Hip Replacement, ACL repair and reconstruction, Diabetes, Back Pain / Pain Management, Heart Failure, Congestive Heart Failure

Premium Channels are expected to increase revenue per client by 10--50% and adoption rates for new health care clients significantly increased.

Cloud TV Platform ? Pioneering the .TV Era

On August 12, 2015 ? the company announced a substantial step forward in the globally expanding video marketplace, with the company's focus in developing proprietary technology, patenting ahead of the curve and owning the future in which the company is creating.

The substantial new Cloud TV Platform has dramatically accelerated .TV network creation, responsive mobile experience and video load times in North America and Australia.

xTV Networks Ltd

ACN 16 124 251 396

Suite 5, Level 1 12--20 Railway Road, Subiaco WA 6008



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Intel and xTV ? Digital Signage Market

Significantly, the partnership with Intel has expanded into a customer relationship with multiple

networks now purchased from xTV to train Intel employees in selling the combined solution.

Intel has a global network of field sellers who work with Value--added Resellers (VARs), OEMs

and Partners. xTV and Intel are working closely together to leverage the combined product

offering where the Intel Compute Stick and the xTV Cloud TV platform is a stand--out product

combination in the global digital signage market.

Telecommunications Partner ? AT&T Acquires DIRECTV

In partnership with UST--Global, xTV has been active with AT&T in the Digital Signage market.

During the past few months, AT&T has only just recently completed the acquisition of DIRECTV.

xTV has recently signed a new Non--Disclosure agreement as a result and exploring a deeper

partnership with AT&T/DIRECTV as a result of the DIRECTV acquisition. More news to follow on

this front as the customer contracts and/or new development agreements are closed and

accordingly announced to the market.

Financials

Receipts from customers remained relatively steady at USD $155K with net cash outflows

higher than usual due to end of financial year, new customer trials, expanded sales & marketing

activities and additional investments in the Cloud TV platform.

Cash on hand was USD$3.09M

A full copy of the results is enclosed.

Joe Ward

Jane Morgan

CEO

Investor & Media Relations

joe.ward@

investors@

xTV Networks Ltd

ACN 16 124 251 396

Suite 5, Level 1 12--20 Railway Road, Subiaco WA 6008



For personal use only

Rule 4.7B

Appendix 4C

Quarterly report for entities admitted on the basis of commitments

Introduced 31/03/00

Amended 30/09/01, 24/10/05, 17/12/10

Name of entity

xTV Networks Ltd

ABN

16 124 251 396

Quarter ended ("current quarter")

30 Sep 2015

Consolidated statement of cash flows

Cash flows related to operating activities

1.1 Receipts from customers

1.2 Payments for (a)

staff costs

(b)

consultants

(c) professional services

(d)

sales & marketing

(e) other working capital

1.3 Dividends received

1.4 Interest and other items of a similar nature

received

1.5 Interest and other costs of finance paid

1.6 Income taxes paid

1.7 Other (new business evaluation)

Net operating cash flows

Current quarter $USD'000

155

(642)

(427)

(189)

(79)

(253)

--

2 -- -- --

(1,433)

Year to date

(3 months)

$USD'000 155

(642)

(427)

(189)

(79)

(253)

--

2 -- -- --

(1,433)

xTV Networks Ltd

ACN 16 124 251 396

Suite 5, Level 1 12--20 Railway Road, Subiaco WA 6008



For personal use only

1.8 Net operating cash flows (carried forward)

Cash flows related to investing activities

1.9 Payment for acquisition of:

(a)

businesses (item 5)

(b)

equity investments

(c)

intellectual property

(d)

physical non--current assets

(e)

other non--current assets

1.10 Proceeds from disposal of:

(a)

businesses (item 5)

(b)

equity investments

(c)

intellectual property

(d)

physical non--current assets

(e)

other non--current assets

1.11 Loans to other entities

1.12 Loans repaid by other entities

1.13 Other (provide details if material)

Net investing cash flows

1.14 Total operating and investing cash flows

Cash flows related to financing activities

1.15 Proceeds from issues of shares, options, etc.

1.16 Proceeds from sale of forfeited shares

1.17 Proceeds from borrowings

1.18 Repayment of borrowings

1.19 Dividends paid

1.20 Other

1.21 Capital raising costs (current quarter

includes adjustment of (473) relating to

previous quarter)

Net financing cash flows

Net increase (decrease) in cash held

1.21 Cash at beginning of quarter/year to date

1.22 Exchange rate adjustments

1.23 Cash at end of quarter

Current quarter $USD'000

(1,433)

-- -- --

(20) --

-- -- -- -- --

-- -- --

(20)

(1,453)

292 -- -- -- -- --

(20)

272

(1,181)

4,462 (183) 3,098

Year to date

(12 months)

$USD'000

(1,433)

-- -- --

(20) --

-- -- -- -- --

-- -- --

(20)

(1,453)

292 -- -- -- -- --

(20)

272

(1,181)

4,462 (183) 3,098

xTV Networks Ltd

ACN 16 124 251 396

Suite 5, Level 1 12--20 Railway Road, Subiaco WA 6008



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