APA GROUP — M&A Activity 2012

Aug 14, 2012

Hastings Funds Level 27, 35 Collins Street Management Limited Melbourne VIC 3000 Australia ABN 27 058 693 388 T +61 3 8650 3600 AFSL No. 238309 F +61 3 8650 3701 www.hfm.com.au Melbourne, London, New York, Sydney

Total pages: 2

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ASX Announcement

Hastings Diversified Utilities Fund (HDF)

15 August 2012

Pipeline Partners Australia increases its all cash offer for HDF

A subcommittee of independent directors of Hastings Funds Management Limited (HFML), as Responsible Entity for HDF, notes Pipeline Partners Australia’s announcement today that it has increased its all cash offer price to $2.43 per HDF stapled security, which compares to its previous offer of $2.325[1] per security.

The independent directors continue to recommend unanimously that HDF Securityholders accept Pipeline Partners Australia’s offer, in the absence of a superior proposal and subject to the Independent Expert continuing to conclude that the offer is fair and reasonable.

The APA Group’s (APA) offer which comprises $0.62 in cash and 0.390 APA securities has an implied offer value of $2.45 per HDF security, based on the closing price of $4.70 for APA securities as at market close on 14 August 2012.

The independent directors have carefully considered both Pipeline Partners Australia’s and APA’s takeover offers and continue to recommend that HDF Securityholders accept Pipeline Partners Australia’s offer in the absence of a superior proposal and subject to the Independent Expert continuing to conclude that the offer is fair and reasonable.

The independent directors note that the APA offer includes a scrip component which creates some uncertainty in determining the APA offer price. Since APA’s announcement on 9 August 2012 of its revised offer of $2.51[2] per HDF security, the implied value of APA’s offer has ranged from $2.48 to $2.44 per security. There is no assurance that APA’s offer value will not change further in the future. In contrast, the Pipeline Partners Australia offer is all cash and therefore provides a more certain offer price.

The independent directors of HFML will release a Supplementary Target’s Statement following the release of Pipeline Partners Australia’s Supplementary Bidder’s Statement.

For more information, HDF Securityholders are advised to contact the HDF Information Line on 1800 815 610 (toll-free in Australia) or +612 8256 3357 (outside Australia).

Unless otherwise stated, the information contained in this document is for informational purposes only. It does not constitute an offer of securities and should not be relied upon as financial advice. The information has been prepared without taking into account the investment objectives, financial situation or particular needs of any ~~particular person or entity. Before making an invest~~ ment decision you should consider, with or without the assistance of a financial adviser, whether any investments are appropriate in light of your particular investment needs, objectives and financial circumstances. Neither Hastings, nor any of its related parties including Westpac Banking Corporation ABN 33 007 457 141, guarantees the repayment of capital or performance of any of the entities referred to in this document and past performance is no guarantee of future performance. Hastings, as the Manager or Trustee of various funds, is entitled to receive management and performance fees.

1 Represents an offer value of $2.35 per security less the $0.025 distribution paid on 6 August 2012.

2 The implied value of APA’s offer was $2.51 per HDF security, based on the closing price of $4.85 for APA securities on 8 August 2012.

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For further enquiries, please contact:

Colin Atkin

Chief Executive Officer

Hastings Diversified Utilities Fund Tel: +61 3 8650 3600 Fax: +61 3 8650 3701 Email: investor_relations@hfm.com.au Website: www.hfm.com.au

Simon Ondaatje

Head of Investor Relations

Hastings Funds Management Tel: +61 3 8650 3600 Fax: +61 3 8650 3701 Email: investor_relations@hfm.com.au Website: www.hfm.com.au

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Jane Frawley Company Secretary

Hastings Funds Management Limited