ASPEN GROUP — Capital/Financing Update 2007

Dec 18, 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 19 DECEMBER 2007

CONTINUED GROWTH IN FUNDS MANAGEMENT

Aspen Group (ASX:APZ) is pleased to announce several new acquisitions resulting in further growth within its funds management business. The acquisitions, for its unlisted Aspen Parks Property Fund (“Aspen Parks”) and Aspen Diversified Property Fund (“Aspen Diversified”), are in line with each Fund’s investment objective and add a further $34.6 million to the Group’s total assets under management which now exceeds $1.3 billion.

Aspen Group Managing Director Mr Angelo Del Borrello said the proposed acquisitions provided further quality asset growth to both Aspen Parks and Aspen Diversified.

“Our disciplined acquisition strategy continues to identify quality properties for our funds, and is a pleasing result in what has become a tight property market across many sectors,” said Mr Del Borrello.

Aspen Parks Acquires 100% Ownership of Monkey Mia

Aspen Parks, Aspen’s holiday and accommodation park fund, has acquired the remaining 50% share in the Monkey Mia Dolphin Resort for $9.5 million, following the initial acquisition of a 50% interest in December 2005. The acquisition requires the appropriate assignment of lease consents.

Monkey Mia Dolphin Resort is a unique beachfront property located in the world heritage Shark Bay region, known around the world for its famous dolphin beach. The property also represents a vital link in the Fund’s west coast network of properties.

Aspen Parks have been managing the property since acquiring an initial 50% interest, and will now aim to generate greater management synergy following a move to full ownership.

“The strong trading performance of the property, with turnover and profit showing a strong increase in the past 12 months, convinced Aspen to seek 100% ownership of the property,” said Mr Del Borrello.

Following settlement of the acquisition, scheduled for early 2008, the Fund will have a total portfolio of $228 million, across 26 parks Australia-wide.

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Aspen Diversified Acquires Two NSW Properties

Aspen Diversified, which seeks commercial properties in the $5 million to $30 million range, has undertaken two acquisitions in NSW.

Shellharbour City Plaza is an office/retail property located at Shellharbour, some 20 minutes from Wollongong, New South Wales. The property provides 1,318 sqm in office and 1,674 sqm in retail area along with the attraction of a basement car park. Key tenants include the Department of Community Services and Rebel Sport. The property, which will be acquired for $8.3 million, will be earnings accretive to the Fund.

At Lane Cove, only 12 km from the Sydney CBD, two adjoining properties have been acquired in the one transaction for $17 million from Colonial First State Global Asset Management’s Direct Property Investment Fund. The office facility at 2 Apollo Place, provides 4,095 sqm of net lettable area complemented by 98 parking spaces. The property is fully leased to Optus Administration Pty Ltd as a data recovery centre. The neighbouring office facility at 3 Apollo Place, is similar in size with 3,480 sqm of net lettable area and basement parking for 69 vehicles. The building is fully let to Steinhoff Asia Pacific Limited who trade in Australia as Freedom Furniture.

Mr Del Borrello commented, “these two transactions represent a positive move for Aspen Diversified by adding further diversity to the portfolio, while the addition of several high profile tenants adds further security to the Fund’s income”.

Settlement of both acquisitions is scheduled to occur prior to 21 December 2007.

Funds Management Outlook

Aspen’s funds management activities in general continue to progress positively.

Aspen Parks and Aspen Diversified remain very competitive offerings to investors with both Funds offering investors an approximate 8% annualised yield, and the attraction of distributions paid monthly. In addition Aspen’s sound acquisition strategy and active asset management will seek to drive further capital growth for each Fund.

Aspen’s funds management pipeline remains strong with at least a further three new funds to be launched in early 2008, providing access to new property sectors such as retirement living and lifestyle villages. Plans are also well advanced for the launch of Aspen’s fund of fund product, offering investors exposure to a broad range of property sectors in the one fund.

Mr Del Borrello said “we continue to see strong upside for quality property based investments and will leverage our well established team and strong balance sheet to underpin the delivery of further innovative funds management products”.

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For further information please contact:

Angelo Del Borrello John McGlue Managing Director, Aspen Group Porter Novelli Phone: (08) 9220 8400 Phone: (08) 9386 1233 Mobile: 0419 335 411 Mobile: 0417 926 915

Or visit www.aspengroup.com.au

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