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Australian Internet of Things (IoT) technology company X2M Connect Limited (ASX:X2M) (“X2M” or “the Company”) is pleased to announce that it has secured two new Software as a Service (SaaS) and maintenance contracts in South Korea.

The contracts are for the provision of remote monitoring services with Gochang County and the self-governing province of Jeju.

The Gochang County contract is for three years of remote water monitoring across 25,500 households and is worth approximately A$1.03 million over the contract term. This contract is a replacement of the previous five-year remote metering contract covering the initial 24,100 households. The County is expected to add 300 new residences onto the platform each year which is expected to deliver additional revenues of approximately A$150,000 over the threeyear period.

X2M has deployed into approximately 8,000 households with remote water meter monitoring in the self-governing province of Jeju in South Korea. Following on from the initial deployment contracts, Jeju has now signed an annual platform SaaS and maintenance contract for the continued provision of remote monitoring services. The first year service contract for these 8,000 households is approximately A$60k.

Gochang renewal contract demonstrates the stickiness of the X2M offering
The addition of an extra three years to the Gochang remote water monitoring contract demonstrates that once the customer has established its operation of the X2M solution, there is a clear case for continuing with the X2M services as the customer has these services embedded within their processes. The total period of eight years links up with the lifecycle of the water meters.

The contracts also build upon the Company’s success in South Korea in recent quarters. X2M won three major tenders with Korea Water Resources Corporation in the December quarter, the combined value of which is approximately A$4.1m.

X2M CEO Mohan Jesudason said: “This contract is important from two aspects, first that our customer at Gochang is satisfied with our services and what they contribute to the County’s offer to its citizens, and secondly that once installed, our solution is very sticky and difficult to replace as the services become embedded in the customer processes. In the quarters ahead, we are strongly focused on growth and will be executing a number of strategies through which we will be able to expand within existing markets and enter new ones”.