Energy Mad : News Release Energy Mad Direct to Consumer Agreement

282f199e-a6f4-4982-9ef5-fead28cdac1d.pdf Media Release 12 May 2016 Energy Mad enters Direct to Consumer Delivery Agreement

On 31 March 2016, Energy Mad announced that because of the rapid growth in the Australian Ecobulb LED sales and the potential for future growth, it was refocusing its resources to maximize its Australian opportunities.

As a result, Energy Mad has entered into an agreement with My Eco Limited, owned by Lawrence Grant, who will be responsible for Energy Mad's Direct to Consumer sales in New Zealand from 1 June 2016. Lawrence Grant has grown and managed the Direct to Consumer business in New Zealand since 2011, and he will cease to be employed by Energy Mad on 31 May 2016.

Energy Mad will continue to apply its expertise to develop and support the Direct to Consumer sales model, primarily in relation to the development and supply of the Ecobulb LEDs.

It is expected that some of the Energy Mad team will transfer to My Eco Limited as part of the transaction.

Under the new agreement, it is planned that My Eco Limited will continue to deliver Ecobulb LED Direct to Consumer sales in New Zealand through the existing outsourced Agency Holder sales forces. The Board sees this as a natural progression of the outsourced Agency Holder sales force model Energy Mad has had in place since late 2014.

These Agency Holder sales forces, under the direction of My Eco Limited, would therefore continue to demonstrate Energy Mad's Ecobulb LEDs to consumers and to provide personalised forecasts of energy savings based on replacing their old light bulbs with Ecobulb LEDs.

The Ecobulb LED demonstrations and energy savings forecasts will continue to be provided on an iPad-based sales tool that was developed by Energy Mad.

Energy Mad believes that in addition to allowing Energy Mad to focus on growing its Australian opportunities, the Agreement will allow My Eco Limited and their team to focus on the Direct to Consumer opportunity in New Zealand and grow those sales to a higher level than Energy Mad would otherwise achieve.

This is expected to increase the operating profit delivered to Energy Mad from the Direct to Consumer Ecobulb LED sales in New Zealand (which was an unaudited

$127K operating loss - before depreciation and amortisation of $5K - on $542K revenues for the three months to 30 April 2016).

ENDS

For More Information Contact:

Chris Mardon [phone]