AMA GROUP LIMITED - Capital/Financing Update 2007

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11 October 2007

SHARE PLACEMENT TO RAISE $17.0 MILLION SIGNIFICANTLY OVERSUBSCRIBED

Allomak Limited (ASX: AMA) today announced a $17.0 million capital raising through an institutional placement of 20,731,707 shares at $0.82 per share (being a 3.75 per cent discount to the dividend adjusted VWAP[1] of shares in the five days up to the recent trading halt). The issue was significantly oversubscribed, with applications in excess of three times the total amount of the placement.

The placement will be completed in two tranches and will not participate in the upcoming FY2007 Final Dividend payment of 2.2 cents.

The placement tranches will be executed as follows:

The first tranche will comprise the offer and issue of 13,000,000 shares at $0.82 per share pursuant to the Company’s 15 per cent placement capacity under the Australian Securities Exchange (“ASX”) Listing Rules, to raise $10.66 million. The first tranche will be due for settlement on Wednesday 17 October 2007.
The second tranche will comprise the offer and issue of 7,731,707 shares to raise an additional $6.34 million. The second tranche will be subject to and conditional upon receiving the requisite shareholder approval which is expected to be sought at the Annual General Meeting of shareholders to be held on or about 22 November 2007. Assuming such shareholder approval is granted, the second tranche will settle the following day, expected to be 23 November.

The capital raising was undertaken to broaden Allomak’s institutional shareholder base and reset gearing levels, enabling Allomak to continue to pursue its well developed pipeline of acquisition opportunities.

The shares will be placed to more than 15 Australian institutions and several professional investors. A considerable number of these shareholders will be new to the share register a further diversifying Allomak’s shareholder base.

Managing Director of Allomak, Mr Rob Allan, said, “We are obviously very pleased with the support the market has shown us in recent times and the tremendous response to this equity raising. We take this support as a solid endorsement of our strategy to acquire outstanding businesses in the automotive aftermarket and related industries and to drive operational greatness within these businesses once part of the Allomak group – a strategy that our entire leadership team have worked hard to realise over the past year and continues to focus on.

1 Volume Weighted Average Price

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“In particular we welcome a number of very well respected institutional investors onto the register as owners of Allomak and to receive the support of several existing institutions who have taken the opportunity to increase their shareholding,.

“The capital raised will support the completion of transactions within our existing acquisition pipeline in the auto aftermarket, and in our recently initiated national consolidation of the smash repair industry, as well as underpin investment in numerous growth opportunities within existing businesses.”

Patersons Securities Limited and Southern Cross Equities Limited acted as Joint-Lead Managers to the placement.