ASPEN GROUP — Annual Report 2007

Aug 26, 2007

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Aspen Group Limited ABN 50 004 160 927

Aspen Property Trust ARSN 104 807 767

Level 8, Septimus Roe Square 256 Adelaide Terrace, Perth Western Australia, 6000

Telephone: 08 9220 8400 Facsimile: 08 9220 8401

Email: homemail@aspengroup.com.au

ASX ANNOUNCEMENT 27 AUGUST 2007

MEDIA RELEASE

Aspen Group Records Strong 2007 Financial Result

Aspen Group (ASX:APZ) is pleased to present its full year financial result for the period ending 30 June 2007.

Strong growth in Aspen’s funds management business and sound performance from its property and investment portfolio have combined to produce a record full year earnings result above the Group’s earnings guidance.

Key Results Summary	FY2007	FY2006	Increase
Headline Result
Total Revenue	$102.13 m	$58.48 m	74.6%
Net Profit After Tax	$73.82 m	$34.49 m	114.0%
Earnings Per Security	34.42 cents	23.92 cents	43.9%
Underlying Result
Total Revenue	$56.03 m	$35.98 m	55.7%
Net Profit After Tax	$33.49 m	$18.47 m	81.3%
Earnings Per Security	15.62 cents	12.81 cents	21.9%
Distributions per security	12.75 cents	10.00 cents	27.5%
Gross assets under management	$1,224 m	$620 m	94.4%
Net Tangible Assets per security	$1.32	$1.01	31%
Gearing	31%	47%	(16%)

Aspen Group Annual Results 2007

Other Key Highlights:

• Revaluations result in an 18.1% uplift on property portfolio

• Institutional equity placement successfully raised $50 million

• Fully underwritten entitlement issue raised $54.5 million

• Funds Management assets under management increased 155% to $883 million

• Successful syndication of three new residential estates increasing total lots under construction to in excess of 4,000

• Commencement of funds management development division following acquisition of Caversham Properties from Futuris Corporation, and successful syndication of assets

• Recruitment of several senior executives to drive further funds management growth

• Melbourne and Adelaide offices established

Financial Performance

• Net Profit After Tax increased 114% to $73.82million

• Underlying Net Profit After Tax increased 81% to $33.49million

• Earnings per security increased 21.9% to 15.62 cents

• Full year distribution increased 27.5% to 12.75 cents

Strong appreciation in the value of Aspen’s property portfolio was a key driver in the headline profit result for the Group. Revaluation gains of $46.1 million were recorded for the financial year with Aspen’s property portfolio benefiting from strong leasing activity and firm market conditions.

Underlying profit increased 81%, substantially higher compared to the previous corresponding period. Key contributors to the profit result were higher revenues from the Group’s property portfolio following the MTAA House acquisition, coupled with investor demand for property related investment funds which underpinned higher fund management income.

Aspen Group Managing Director Angelo Del Borrello said, “astute property acquisitions and Aspen’s active management style have enabled us to capitalise on the firm commercial property market to establish a sound revenue base for the Group”.

Funds management income was 56.7% higher following substantial asset growth and establishment of several new syndicated funds. Mr Del Borrello said, “the growth in assets under management now provides a substantial base on which annual management fees are derived underpinning future income contributions from this division going forward”.

Aspen’s growing investment portfolio, comprising cornerstone equity positions in several of its syndicated funds management entities, also performed soundly during the year resulting in a contribution of $3.1 million to net profit, a substantial increase over the previous corresponding period.

Aspen was pleased to provide an uplift in distribution payments twice during the period, with the total distribution paid for the year of 12.75 cents per security representing an impressive 27.5% increase over the previous corresponding period. Significantly distributions were comfortably paid from the Group’s underlying earnings reflecting Aspen’s sound distribution policy.

Aspen Group Annual Results 2007

Capital Management

• Successful capital raising of $104.5 million during the period

• Market Capitalisation of Aspen exceeds $600 million at 30 June 2007

• Reduction in gearing to 31%

Aspen’s growing recognition as a high quality property group within Australia was reflected in the success of two capital raisings during the period.

In August 2006 a fully underwritten placement to institutional investors of $50 million was undertaken to assist with the acquisition of MTAA House in Adelaide. The issue, approved at a general meeting of securityholders, was extremely well supported, a positive endorsement of the acquisition and the Group’s overall strategy.

In February 2007, Aspen undertook an entitlement issue to raise $54.5 million to fund continued funds management activities and reduce Group debt. The issue also received strong support, enabling Aspen to maintain a sound balance sheet position while securing further growth opportunities.

Mr Del Borrello said, “Aspen’s low gearing position of 31% provides the Group with financial capacity to pursue accretive acquisition opportunities and new funds management activities. The Group’s substantially hedged debt position provides protection from the risks of higher interest rates.”

Aspen views the recent volatility in capital markets as potential for opportunistic acquisitions given the Group’s sound financial position.

Property and Investment Portfolio

• Revaluation of property portfolio resulted in a $46.1 million lift in balance sheet value

• Cornerstone investment value in Aspen fund’s grows to $95 million

• NTA increased 31% to $1.32

Aspen’s active property management strategy has proved beneficial to securityholders during the period with the Group successful in re-positioning its flagship Septimus Roe Square property and achieving valuation uplifts in several other properties.

The successful redevelopment of the Septimus Roe Square forecourt proved to be a timely attraction to tenants desperate for office space in the tight Perth CBD office market. The building was competitive with several other properties along the prestigious Adelaide/St Georges Terrace precinct resulting in record rents being achieved, a key driver in the 51% uplift in the buildings valuation.

Aspen’s aggressive leasing activity contributed to valuation increases in several other properties. Notable was MTAA House, which after just 12 months in the portfolio, recorded a 15% uplift in valuation as Aspen capitalised on the turnaround in the Adelaide office market.

One of Aspen’s earliest acquisitions, Elders Woolstores, recorded a 28% increase as surrounding redevelopment activity continues to enhance the opportunities for this property as foreshadowed by Aspen at acquisition.

Aspen Group Annual Results 2007

Significant growth in Aspen’s funds management entities has resulted in the value of Aspen’s cornerstone equity positions increasing from $23.9 million to $93.3 million during the year. This growing investment portfolio has provided Aspen with greater property sector diversification, including holiday and accommodation parks, small commercial, residential land, retirement villages and commercial construction.

Mr Del Borrello commented, “our expanding investment portfolio has enabled Aspen to gain further diversification in both income and sector exposure, while retaining management control over each of our managed entities.”

Funds Management

• Property assets under management increased 155% to $883 million

• Broadening of property sector exposure

• Acquisition of Caversham property development portfolio

Significant advances were made in funds management activities during the period resulting in a substantial lift in profit margins and assets under management, and broadening of property sector exposure.

Aspen’s open-ended funds, Aspen Parks and Aspen Diversified, continue to attract new investors and support from existing investors enabling growth in assets within each fund. Combined assets under management of $325 million for these funds provides strong annual management fee income to the Group.

Recognising the importance of gaining a stronger foothold within the financial planning community Aspen appointed a Head of Distribution to drive its distribution strategy. Mr Del Borrello said, “we believe a strong distribution team is the key to consistent inflows to both Aspen’s open-ended funds and proposed new funds. In addition we are working with several administration platform providers to enable greater access for investors to Aspen funds.”

Aspen Living acquired three estates, valued collectively at $149 million, during the period to bring to four the number of syndicated land estates under management. With over 4000 urban zoned lots Aspen has established a strong sales pipeline from which to derive long term project management income.

The creation of Aspen Developments followed the acquisition of the Caversham Property business from Futuris Corporation (ASX:FCL). This exciting acquisition led to the establishment of Aspen Development Fund No1 as a multi-project development fund with a commencing asset value of $234 million. Aspen and Futuris have each retained a 25% interest in the Fund, with the Victor Smorgon Group also acquiring a 25% interest in the Fund.

Progress has been made in the Aspen Villages business following the appointment of a CEO earlier in the year. Several sites have been secured for development with transportable home solutions identified across retirement living, tourism, and remote living situations.

Aspen Communities is the latest initiative of Aspen Group, focusing on the retirement living and aged care sector which Aspen has identified as having significant growth potential. The acquisition of Caversham, which included several retirement living facilities, has added immediate development expertise to Aspen and has been followed by the appointment of an experienced CEO to fast-track Aspen’s presence in the sector, which bodes well for an exciting 2008.

Aspen Group Annual Results 2007

Outlook

The 2007 result is an outstanding reward for securityholders with continued strong earnings and distribution growth. Further diversification to the Group’s revenue base and property exposure was achieved, both on a sector and geographic basis. In addition Aspen has broadened its skill base and capabilities, further enhancing the Group’s ability to enter new markets and create additional value for the Group in forthcoming years.

Aspen’s track record of successfully creating value in established property sectors while identifying opportunities in non-traditional property markets, coupled with a strong financial position provides an ideal platform for 2008 to be another groundbreaking year.

End

For further information please contact:

Angelo Del Borrello Managing Director, Aspen Group Phone: (08) 9220 8400 Mobile: 0419 335 411

John McGlue Porter Novelli Phone: (08) 9386 1233 Mobile: 0417 926 915

Or visit www.aspengroup.com.au

Aspen Group Annual Results 2007