ADAIRS LIMITED — Major Shareholding Notification 2018

Aug 27, 2018

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Release to the Australian Securities Exchange

SALE OF SHARES BY CATALYST

Melbourne, 28 August 2018:

Adairs Limited (ASX: ADH) (the “Company”) has been informed that funds managed or advised by Catalyst Investment Managers ("Catalyst") sold 20 million ordinary shares in the Company, via an underwritten block trade. Following completion of the sale, the Catalyst shareholder entities will continue to hold in aggregate approximately 20 million shares in the Company.

Catalyst has informed Adairs that pursuant to the block trade agreement, the Catalyst shareholder entities have agreed to a 60 day escrow in respect of the remaining shares, subject to a number of customary exceptions.

An updated substantial shareholder notice will be lodged by Catalyst following completion of the sale.

End.

For further information please contact:

Corporate Mandy Drake, CFO P: +61-3 8888 4500

Investors & Media

Ronn Bechler, Market Eye P: +61 400 009 774 E: ronn.bechler@marketeye.com.au

Adairs Limited www.adairs.com.au 2 International Court, Scoresby, Victoria, Australia, 3179