ACCOUNTING

Corporate Governance and the Nature of Accounting

Investigation of Corporate Governance Characteristics

Part 1

Mobile Innovations Pty Ltd Corporate Governance Indicators

The prime focus of this paper is corporate governance in Australia. The directors are responsible for the corporate governance practices of the company. This statement sets out the main corporate governance practices that were in operation throughout the financial year, except where otherwise indicated.

The Board Of Directors

The board of directors of Mobile Innovations Limited is responsible for the leadership and direction of the company, including strategy, financial budgets and business goals. The board monitors the company's progress towards achieving these goals by means of management reports presented at bi-monthly meetings or as required in the case of special investigations. The board currently comprises five directors: William Jephcott Non-executive Chairman

Jonathan Marchbank Non-executive Director

Nigel Bramwell Non-executive Director

Chris Shaw Non-executive Director

Neil Gamble Non-executive Director

Particular emphasis is placed on the need for compliance with legislation in areas such as trade practices, environmental, occupational health and safety and the Corporations Act 2001.

Committees Of The Board

The board has formed three committees: audit, compensation and nomination. The audit committee monitors business and financial risks and ensures the integrity of the company's financial statements by meeting with accounting staff and the external auditors. It is also responsible for monitoring the company's compliance with legislative requirements. The compensation committee is responsible for reviewing the compensation of executive directors and senior executives to ensure that they are rewarded at an appropriate rate. In due course this committee will also make recommendations to shareholders regarding non-executive directors' fees. The nomination committee is responsible for the nomination of additional directors. The committee meets as and when required.

Non-Executive Director Remuneration

The total maximum remuneration of non-executive directors has been approved by shareholders at $250,000 per annum. Remuneration of the Chairman is currently $50,000 per annum and for non-executive directors $30,000 per annum. The approved limit provides adequate flexibility for the appointment of additional directors.

Shareholdings

The company has adopted a share-trading policy allowing directors and nominated senior staff to trade in the company's securities generally only in the six-week period following the release of the company's half-yearly results and yearly results to the Australian Stock Exchange, and after the annual general meeting. Senior staff also require the approval of the board.

Independent Advice

With the prior approval of the Chairman, each director has the right to seek independent legal and other professional advice at the company's expense concerning any aspect of the company's operations or undertakings in order to fulfil their duties and responsibilities as directors.

Continuous Disclosure

The board is committed to ensuring price-sensitive information is released to the Australian Stock Exchange in accordance with continuous disclosure requirements.

All reports made to the Australian Stock Exchange are available on the company's internet site at www.mobileinnovations.com.au.

Mobile Innovations Limited

Corporate Governance Statement

Risk Management

The board is responsible for the company's system of internal controls. The board constantly monitors the operational and financial aspects of the company's activities and, through the audit committee, the board considers the recommendations and advice of external auditors and other ...