Decimal Software : Notice under ASX LR 3.10.5A

ASX Release

25 January 2017

NOTICE UNDER ASX LISTING RULE 3.10.5A

Decimal Software Limited ("Decimal" or the "Company") has issued a total of 57,374,631 fully paid ordinary shares to investors (Placement). The Placement was completed on 25 January 2017 and announced to the market on 18 January 2017.

Of the 57,374,631 fully paid ordinary shares issued, 22,949,852 were issued under ASX Listing Rules 7.1A available capacity and the balance of 34,424,779 were issued under ASX Listing Rule 7.1.

Pursuant to ASX Listing Rule 3.10.5A, the Company provides the following information in relation to the Placement made under ASX Listing Rule 7.1A.

1. The dilutive effect of the Placement on existing shareholders of the Company is as follows:

   Shares	Dilution
   Shares on issue pre Placement	229,498,524
   Shares issued under LR 7.1 capacity	34,424,779	12.00%
   Shares issued under LR 7.1A capacity	22,949,852	8.00%
   Total Shares on issue post Placement	286,873,155
   Total dilution effect	20.00%

   Details of the Company's issued capital following the completion of the Placement held by pre- Placement and new shareholders are as follows:

   Shares	Percentage
   Pre-Placement shareholders who did not participate in the Placement	222,937,530	90.64%
   Pre-Placement shareholders who did participate in the Placement	6,560,994	2.67%
   New shareholders who participated in the Placement	16,457,788	6.69%

2. The equity securities were issued for cash consideration. The Company issued the securities as a Placement under rule 7.1A in order to accelerate Decimal's sales and marketing activity targeting the superannuation industry and was the most efficient mechanism for raising funds at the time.

3. There was no underwriting for this Placement.

4. The capital raising was led by Bell Potter Securities and charged a fee of 5% (excluding GST) for the Placement.