Company announcements: MPAY

MPAY - OTHERS MANAGEPAY SYSTEMS BERHAD("MANAGEPAY" or the "Company") -Letter from Multimedia Development Corporation Sdn Bhd (“MDeC”) to ManagePay Technologies Sdn Bhd (“MTSB”), a wholly-owned subsidiary of ManagePay, in relation to the MPAY Collection on Delivery (COD) Solutions and Services (“COD Project”)

Announcement Type: General Announcement

Company Name	MANAGEPAY SYSTEMS BERHAD (ACE Market)
Stock Name	MPAY
Date Announced	15 Jan 2015
Category	General Announcement
Reference No	CC-150114-94DA9

Type	Announcement
Subject	OTHERS
Description	MANAGEPAY SYSTEMS BERHAD("MANAGEPAY" or the "Company") -Letter from Multimedia Development Corporation Sdn Bhd (“MDeC”) to ManagePay Technologies Sdn Bhd (“MTSB”), a wholly-owned subsidiary of ManagePay, in relation to the MPAY Collection on Delivery (COD) Solutions and Services (“COD Project”)
The Board of Directors of ManagePay wishes to announce that MTSB had on 15 January 2015 accepted the Letter of Offer from MDeC dated 9 January 2015 (“Letter of Offer”) on the offer from MDeC to grant MTSB a maximum sum of Ringgit Malaysia Seven Hundred Forty-Nine Thousand One Hundred and Eighty-Five (RM749,185.00) only for the Product Development & Commercialisation Fund (“the Grant”) for the purpose of developing and commercialising MPAY Collection on Delivery (COD) Solutions and Services (“COD Project”), subject to the terms and conditions as set out in the Letter of Offer. The COD Project is designed to support the growth of e-commerce in Malaysia. It allows the sale of goods by mail or online order where credit cards or debit cards payment is made via MPAY Mobile POS on delivery rather than in advance. If the goods are not paid for, they are returned to the retailer. The recipient of the Grant has to meet stringent criteria amongst others, a project submitted must have clear sales targets and market share goals been established in terms of geography and timelines and more importantly, a business intent declared by a prospective client. The Company has received a Letter of Intent dated 10 June 2014 from Skynet Worldwide (M) Sdn. Bhd. (34594-V) during the submission of the Grant application, which stated its interest to become a prospective client of ManagePay COD Project. ManagePay believes that the COD Project will provide ManagePay Group an additional source of revenue stream as it is estimated that a substantial portion of the total e-commerce transaction will be fulfilled through COD services upon the market and service maturity in coming years. INFORMATION ON MDEC MDeC is an organisation mandated by the Government to visualise and drive Digital Malaysia. Digital Malaysia is the nation’s digital economy that is powered by digital technologies and encompasses all aspects of the economy, governance and social interactions. THE PRODUCT DEVELOPMENT & COMMECIALISATION FUND (“PCF”) PCF is aimed at assisting local MSC Malaysia status companies to accelerate the development and commercialisation of innovative, market driven product/solutions/services as well as increasing the creation of Intellectual Property for commercialisation. The funding is based on competitive bidding on targeted technology CALL areas and funds the best set of projects from a larger pool of bids. PCF is a performance-based fund, i.e. applicants spell out realistic and achievable technical and commercial targets. Disbursements of PCF are based on reimbursement basis upon meeting the said technical and commercial targets. PCF supports market-driven, innovative product development with high commercial potential where applicants are encouraged to gather and address market demand as well as identify pilot implementation(s). It also supports end-to-end funding as it covers product development and commercialization costs. DOCUMENTS FOR INSPECTION The Letter of Offer is available for inspection at the registered office of ManagePay at Lot 6.05, Level 6, KPMG Tower, 8 First Avenue, Bandar Utama, 47800 Petaling Jaya, Selangor Darul Ehsan, during normal business hours from Mondays to Fridays (except public holidays) for a period of three (3) months from the date of this announcement. This announcement is dated 15 January 2015.

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